Enter the Mittals for Rio takeover

Rio, one of the world's major producers, is the subject of a contested bid by Australian mining group BHP Billiton, worth about $160 billion at present share prices. The deal is being scrutinised by antitrust regulators. An ArcelorMittal spokesman declined comment on the report. Rio Tinto shares rose 1.4 percent in London to 5925 pence by 0800 GMT and BHP Billion gained 1.1 percent to 1895 pence, while ArcelorMittal stock eased 0.8 percent in Amsterdam to 63.15 euros. The Financial Times said Mittal's thinking emerged as his adviser Goldman Sachs announced he had joined the board of the Wall Street bank.

Mittal has considered some involvement in the takeover, such as the idea of taking a stake in Rio through buying from existing shareholders, it quoted an unnamed banker as saying. On the other hand, he could wait until later, when quite possibly some of the iron ore assets (of Rio) go on sale as a result of demands by antitrust regulators, said the banker.

The Financial Times said bankers believed Rio’s iron ore assets were currently worth about $50 billion. But this figure could fall sharply in the next few months, particularly if the boom in steelmaking starts to peter out. Malay Mukherjee, a member of ArcelorMittal's six-person management board, told Reuters in April that the company aimed to supply up to 70 percent of its own iron ore needs by 2012 to protect itself against surging raw material prices.

Leading steel maker Corus, which was taken over by India’s Tata Steel last year, fears that BHP Billiton’s bid to takeover mining major Rio Tinto would lead to competition issues, the British media reported today. “The steel maker Corus has stepped up its campaign against BHP Billiton’s attempt to take over mining rival Rio Tinto by complaining to the European Union about the deal,” The Sunday Times reported.