ArcelorMittal, the world's top steel maker, is mulling breaking up a takeover bid from Cleveland-Cliffs Inc for US coal miner Alpha Natural Resources, with a counter bid, the Financial Times reported. ( Reuters )
ArcelorMittal had indicated its willingness to make an all-cash offer for Alpha in June, prompting the latter to seek other higher bids, the Financial Times said, citing people close to the companies.
ArcelorMittal's bid was at or near $110 a share, the FT added, citing its sources.
However, a spokesman for Alpha told Reuters it has a "definite merger agreement" with Cleveland-Cliffs, for about $8.3 billion as announced in mid-July, and that Alpha was determined to see the deal to the finish line.
The spokesman declined to comment on any counter bids the company may have been offered.
ArcelorMittal could also wait for the deal to break down or for it to go through, which could make the combined entity a takeover target as well, the FT said.
An ArcelorMittal spokesman reached via e-mail declined to comment on the FT report. Cleveland-Cliffs did not immediately return a call seeking comment.