ArcelorMittal offers up to $10 billion to Indonesia

The world's largest steelmaker, ArcelorMittal, has increased its investment offer up to US$10 billion from $3 billion to develop mines and a steel plant in Indonesia, a minister said.

The company is seeking to buy a stake in state-owned steel maker PT Krakatau Steel (KS) and set up a venture with state-owned mining firm PT Aneka Tambang (Antam), State Minister of State Enterprises Sofyan Djalil said on Thursday after meeting with ArcelorMittal's officials.

AlcelorMittal?s Executive Vice President for Finance, Mergers and Acquisition Sudhir Maheshwari said that it was aiming to hold a maximum 49 percent stake in KS.

Maheshwari didn't give a schedule for the planned investments.

India's Tata Steel Ltd. and Essar Steel Ltd. and Australia's BlueScope Steel Ltd. are also vying for a shareholding in KS.

Separately, top officials of BlueScope were also in the town on Thursday, meeting with Minster of Industry Fahmi Idris. ?As there are many parties which are interested in KS, the process of privatization will be in the form of a tender,? Fahmi said.

KS's President Commissioner Taufiequrrahman Ruki said the government should instead sell shares in an initial public offering. ``Let KS develop itself without money from investors,'' Ruki told reporters in Jakarta. (*)