Breaking News....

Arcelor Backs Mittal Takeover Offer, Luxembourg Says (Update1)

June 25 (Bloomberg) -- Arcelor SA, the world's No. 2 steelmaker, agreed to a takeover offer from Mittal Steel Co., Luxembourg Economy Minister Jeannot Krecke said, ending a five- month tussle and creating a new global champion.

LONDON/LUXEMBOURG (Reuters) - European steel maker Arcelor (CELR.PA: Quote, Profile, Research) accepted an improved takeover bid from Mittal Steel (ISPA.AS: Quote, Profile, Research) to create a steel giant three times larger than any rival, sources familiar with the matter said on Sunday.

Arcelor and Mittal, already the world's two largest steel producers, have held talks to end a bitter five-month feud over Mittal's unsolicited plans to acquire its rival and create a global giant with an annual output of over 100 million metric tons.

After a five-month takeover battle involving an Indian-born billionaire, a Russian oligarch and governments across western Europe, the sources told Reuters that Arcelor's board voted unanimously for Mittal's revised offer.


There was no immediate confirmation from either company.

kya dada, will someone explain how this mittal arcelor merger benefit anyone in India ? I think Mittal has bitten more than he can chew this time...

June 26 (Bloomberg) --U.S. Stocks Rise on $90 Billion in Acquisitions; Pfizer, Inco Advance
U.S. stocks rose for the first time in three days after companies announced more than $90 billion in acquisitions today, increasing confidence that equities are inexpensive relative to earnings.

New Home Sales

An unexpected rise in new home sales may ease concern that the economy is slowing too much as a result of rate increases.

Sales of new homes in the U.S. gained in May to the highest level this year as buyers found deals in a market bloated with unsold homes. Sales increased 4.6 percent to an annual rate of 1.234 million, according to the Commerce Department. Economists expected purchases to slow to a 1.145 million pace, according to the median estimate in a Bloomberg survey.

The Fed has raised its target rate to 5 percent from 1 percent since June 2004 in an effort to keep a lid on inflation. The Fed's policy making Open Market Committee, meeting June 28 and 29, will raise the target rate to 5.25 percent, according to 120 of the 122 economists surveyed by Bloomberg News. Interest- rate futures show traders see an 88 percent probability the Fed rate will go to 5.5 percent in August.

Homebuilders in S&P indexes gained 2.2 percent. D.R. Horton, the largest U.S. builder by stock-market value, advanced 59 cents to $24.25.