SOURCE: Arcelor

February 21, 2006 05:03 ET

Arcelor acquires 88.38% of Dofasco's Common Shares and extends the expiry time of its offer to March 7, 2006

Luxembourg -- (MARKET WIRE) -- February 21, 2006 -- Luxembourg and Hamilton (Ontario)., Feb. 21, 2006 - Arcelor S.A. and Dofasco Inc. (TSX: DFS) announce that 69,563,143 common shares of Dofasco including shares deposited by guaranteed delivery, representing 88.38% of the Dofasco common shares outstanding on a fully-diluted basis, were deposited to Arcelor's offer to acquire all of the outstanding common shares of Dofasco for CAD$71.00 in cash per Dofasco common share by the expiry time of the offer on February 20, 2006.

All of the conditions of the offer now being satisfied, Arcelor's wholly-owned subsidiary, 4313267 Canada Inc., has taken up all of the Dofasco common shares that were deposited to the offer.

Payment for such Dofasco common shares is expected to be made on or prior to February 23, 2006.

In order to provide Dofasco shareholders who have not yet accepted the offer with more time to do so, Arcelor has extended the expiry time of the offer to 8:00 p.m. (Toronto time) on March 7, 2006. A notice of variation for this extension will be mailed to shareholders as soon as practicable and will be made available on SEDAR at

"Today, Dofasco becomes the centre of Arcelor's growth strategy in North America, and cornerstone of our continued worldwide leadership in the market for automotive steel ," said Guy Dollé, Chief Executive Officer, Arcelor. "I am delighted to welcome the employees of Dofasco into the Arcelor family and to reinforce our commitment to the community of Hamilton."

"The coming together of our two companies is a partnership that will create significant, long-term opportunities for growth in an increasingly competitive global industry," said Don Pether, President and Chief Executive Officer, Dofasco. "We will be positioned to offer our customers an enhanced range of solutions in steel, and thereby to create significant value", he continued.

Arcelor's commitment to sustainable development, employee health and safety and community engagement lies at the heart of the company's strategy. Arcelor and Dofasco are two of only three steel companies listed on the Dow Jones Sustainability Index, reflecting the shared values of both companies with respect to people, the environment, and the principles of financial sustainability.

"Arcelor's leadership as a sustainable corporation is built on local leadership and perspectives that reflect the values and priorities of the communities in which our

company operates, and reflect respect and concern for our employees," said Dollé. "We are excited about continuing to work with the Dofasco family and the community of Hamilton to begin a new chapter in Dofasco's proud history."

Arcelor intends, as soon as permitted, to acquire the remaining Dofasco common shares by means of a statutory compulsory acquisition procedure under the applicable provisions of the Canada Business Corporations Act at the same price as the offer price.

Arcelor also intends, upon acquiring a sufficient number of Dofasco common shares, to de-list the common shares from the Toronto Stock Exchange.

About Dofasco

Established in 1912, Dofasco is a leading North American steel solutions provider. Product lines include hot rolled, cold rolled, galvanized, Extragal™, Galvalume™, and tinplate flat rolled steels, as well as tubular products, laser-welded blanks and Zyplex™, a proprietary laminate. Dofasco's wide range of steel products is sold to customers in the automotive, construction, energy, manufacturing, pipe and tube, appliance, packaging and steel distribution industries. The company has additional operations in Canada, the United States and Mexico. Dofasco also owns 98.7% of Québec Cartier Mining (QCM). QCM owns and operates the Mont-Wright open pit mine and a pellet plant at Port-Cartier.

About Arcelor

Arcelor is the number one steel company in the world with a turnover of 32.6 billion euros in 2005. The company holds leadership positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company - number one steel producer in Europe and Latin America - ambitions to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its global customers. Arcelor employs 96,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labour relations and social responsibility.

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