ArcelorMittal's raised offer for Essar Steel plunges shares by 2.6%

ArcelorMittal shares fell more than 2 per cent on Tuesday after the world's largest steelmaker said it had raised its offer for India's Essar Steel, prompting concerns that it was overpaying. ArcelorMittal is forming a joint venture with Japan's Nippon Steel & Sumitomo Metal Corp to bid for Essar in competition with bids from Russian lender VTB and Vedanta Resources.

It said on Monday that it had submitted a revised proposal representing a "material increase" on its two previous offers. Indian media reported.

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