Book Review: COLD STEEL - Lakshmi Mittal and the Multi-Billion-Dollar Battle for a Global Empire

First of all, let me tell you that it is the best book on corporate world that I have read so far. Perseverance, discipline, business acumen, patience, might, aggression – call anything and you will find it here in fiercest hostile takeover in the history of global steel industry. The book is an interesting and captivating read which will take you by surprise when you may come to know that phone calls are prone to being tapped when you are in the game of hostile takeover.The deal also involved political figures like prime minister, president, and finance minister not only of France but also of India. The meetings were held in the wildest destination from graveyard to airport lounge or on an isolated island which is beyond the reach of media. Moreover, call it Project Olympus or Project Louise or Project Tiger, all of them are associated to Arcelor. These were the names assigned by Mittals team, Arcelor Team and the French government to save Arcelor from Mittals takeover. While Guy Dolle, Ex Ceo Arcelor was determined not to lose Arcelor to Mittals, Lakshmi Niwas Mittal was determined to put on stake anything for Arcelor to become the biggest steel producer in the world. However, reluctant might Guy had been but somewhere down his heart he was aware that Mittal was better match than Severstal who played the role of White Knight for Arcelor. The final price at which Mittal bought Arcelor was ~ 100% more than his initial offer and it was all due to the white knight Severstal which was brought in by Arcelor. The deal also involved lot of dirty game, mud slinging and remarks to outdo Mittal but he was stoic throughout and at last he came out with flying colours.


I really admire the way LNM agreed to keep Luxembourg as the headquarters for the new company formed after marriage with Arcelor. Not only this, he agreed to dilute the stake in Mittal steels to avoid corporate governance issues and also invited Guy Dolle on board who put down his offer. The author has given a step by step account of the entire battle which went for close to an year. This is a must read for anyone who is interested in corporate world and moreover to know about the tricks applied in hostile takeover. White Knights, Black Knights, Poison pills, stitching are the terms which we must have read it books but while reading this book you can easily visualize them. Hostile takeovers involve lot of confidentiality, shrewdness, and acumen to hit the nail on the head at the right time which you will come across as you run through the book.

It was really a tough job and required out of the box thinking to make everybody think on the same lines and the job becomes much more tedious when there is someone else (Severstal) to bid for the company . For some reasons or other, Guy Dolle was not prepared to see his child Arcelor in Mittal’s kitty but in the end it was shareholders decision who threw Severstal out of race by a phenomenal 57% of negative vote. It also put an end to racist remarks put on by Guy on Mittal and his offer referred to as ‘monkey money’. Not once did Mittal lost his cool and even till the end Mittal was ready to sit on the negotiating table but every time he made an attempt he was shown ‘not for sale’ tag attached to Arcelor. Mittal had to revise his offer thrice and it was all due to the white Knight Severstal and unwillingness of Guy Dolle to enter into an arrangement with an Indian that Mittal had to pay such an expensive price for Arcelor (~ 100% premium on his initial offer). But the marriage brought synergies in galore for Mittal with an entry into the unexplored market of France. The takeover made such an impression on the steel industry that the mightiest steel producers in the world like Nippon Steel and POSCO employed finance consultants and advisors to design a defense mechanism to protect their company from relentless consolidation drive by the rajah of steel industry – Lakshmi Niwas Mittal.

Extracts from the book –
“Guy, this is Lakshmi Mittal. I am calling you as a matter of courtesy to tell you that tomorrow Mittal Steel will be announcing an offer directly to your shareholders for all the shares of Arcelor.”

‘You know, Jeremy, Arcelor is a fantastic company',Aditya Mittal enthused.'It is an excellent company', agreed Fletcher, who in the past had a minor advisory role to Guy Dolle. 'In fact', he laughed, 'it's possibly a much better company than your company.’ That’s true', Aditya laughed back.