ArcelorMittal issues statement on pending investigation in France
ArcelorMittal issued the following statement related to a pending investigation in France following a report in The Telegraph: "This situation relates back to the merger between Arcelor and Mittal Steel in 2007. Following completion of this merger, certain hedge funds or their representatives brought legal proceedings regarding the exchange ratio and the merger process as a whole. Complaints in this respect have so far been dismissed by the Dutch securities regulator and by courts in the Netherlands and Luxembourg, where an appeal remains pending. Monetary damages claimed in the Luxembourg case amount to EUR 180M. In addition, a civil proceeding was initiated in France, which was not the domicile of either company involved in the merger, in 2012 claiming monetary damages of about EUR60K. This proceeding was stayed in July 2013, pending a preparatory investigation by a criminal judge magistrate triggered by the complaints of AAA and subsequently several hedge funds, including those who filed the claims before the Dutch and Luxembourg courts noted above. Under the French system, a judge magistrate investigates allegations brought by interested parties to determine whether there is sufficient basis for a person to be placed under investigation and/or subsequently prosecuted. ArcelorMittal has not been placed under investigation in such preparatory investigation. Any statements as to the possible consequences, including monetary, of the preparatory investigation are entirely speculative. ArcelorMittal believes that the allegations made and claims brought in respect of the merger process are without merit and that the exchange ratio and process complied with the requirements of applicable law, were consistent with previous guidance on the principles that would be used to determine the exchange ratio and that this merger exchange ratio was relevant and reasonable to shareholders of both merged entities. ArcelorMittal considers that its risk of loss in these matters is remote. ArcelorMittal believes that its public disclosure in respect of these matters is and has been in full compliance with applicable laws and regulations."