ArcelorMittal scotches rights issue rumours

Luxembourg, March 17 (IANS) ArcelorMittal, the world's largest steelmaker, Tuesday denied a newspaper report that it was considering a five billion Euro ($6.5 billion) share sale.

'The rumours mentioned within this article are not true,' the company owned by Indian-born billionaire Lakshmi Niwas Mittal said about the Financial Times report.

The newspaper cited market speculation to report ArcelorMittal had hired J.P. Morgan and Deutsche Bank to coordinate a rights issue enabling existing holders to buy one share for every two they own for a discounted eight euros.

The Luxembourg-based ArcelorMittal said in a statement the company has a 'successful debt reduction programme in place and does not need to raise additional capital through a rights issue at this time.'

'The company has not retained any specific advisors for this purpose and the rumours within this article are without foundation and speculative.

'However, the company will continue to review and consider all options as is only prudent given the current challenging operating environment,' it added.