Lakshmi Mittal, the world's fifth richest person and president of global steel giant Arcelor Mittal, spent more than one million dollars a day in fees for his 33.7 billion dollar winning bid to acquire Arcelor.
The NRI business tycoon-led Mittal Steel paid a whopping 188 million dollars in fees to advisors and investment bankers as part of its bid to acquire its nearest rival Arcelor.
The fees were disclosed in the annual report of the merged company, now known as Arcelor Mittal, sent to its shareholders and US regulators last week.
Mittal, the wealthiest person of Indian origin with a net worth of over 32 billion dollars, ultimately won the battle that lasted for close to six months by acquiring control of the world's second largest steelmaker.
Since launching the first bid on January 27, 2006, it took 173 days for Mittal to get the minimum 50 per cent control of Arcelor shares to make the deal successful and a total of 180 days for completion of its offer resulting in 92 per cent shares tendered on July 25, 2006.
However, Mittal paid about 1.06 million dollars a day to its advisors by the time the minimum tender condition of 50 per cent Arcelor shares was met on July 18 for its bid.
Even after taking into consideration the additional seven days that gave it control of 92 per cent Arcelor shares on July 25, Mittal Steel paid 1.04 million dollars a day in fees.
Mittal Steel had hired seven advisors for the deal, including top investment bankers such as Goldman Sachs, HSBC, Credit Suisse, Societe Generale, Citigroup and Rabobank.
The NRI business tycoon-led Mittal Steel paid a whopping 188 million dollars in fees to advisors and investment bankers as part of its bid to acquire its nearest rival Arcelor.
The fees were disclosed in the annual report of the merged company, now known as Arcelor Mittal, sent to its shareholders and US regulators last week.
Mittal, the wealthiest person of Indian origin with a net worth of over 32 billion dollars, ultimately won the battle that lasted for close to six months by acquiring control of the world's second largest steelmaker.
Since launching the first bid on January 27, 2006, it took 173 days for Mittal to get the minimum 50 per cent control of Arcelor shares to make the deal successful and a total of 180 days for completion of its offer resulting in 92 per cent shares tendered on July 25, 2006.
However, Mittal paid about 1.06 million dollars a day to its advisors by the time the minimum tender condition of 50 per cent Arcelor shares was met on July 18 for its bid.
Even after taking into consideration the additional seven days that gave it control of 92 per cent Arcelor shares on July 25, Mittal Steel paid 1.04 million dollars a day in fees.
Mittal Steel had hired seven advisors for the deal, including top investment bankers such as Goldman Sachs, HSBC, Credit Suisse, Societe Generale, Citigroup and Rabobank.
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