AMittal 'in favour of 66% stake for Invitalia' - sources

(ANSA) - ROME, JAN 9 - Global steel manufacturer ArcelorMittal is in favour of increasing the share capital of the Italian government in the ex-ILVA steelworks in the southern Puglia port city of Taranto, now known as Acciaierie d'Italia (ADI), to 66% through the economy ministry's National Agency for Inward Investment and Economic Development (Invitalia), sources close to the company said on Tuesday.
    "ArcelorMittal is in favour of Invitalia's payment of a further 320 million euro of fresh capital to support ADI operations, with its own consequent dilution to 34%", the sources said.
    The steel giant is also allegedly in favour of "the acquisition of the plants from ILVA in Special Administration".
    The purchase was originally scheduled for May 2022 and later postponed to May 2024, the sources added.
    "Invitalia's funding proposal and (the resulting) dilution to 34% of (the stake held by) ArcelorMittal also provides for the termination of the existing joint 50% control between the two shareholders", despite the fact that Invitalia currently holds a similar share of 38%, continued the sources. "The cessation of joint control goes in the opposite direction to all the talks that have taken place," they said, adding that "ArcelorMittal would have instead expected to be able to continue to exercise the role of Invitalia's industrial partner with the same status of 50% control even with reversed share quotas".
    On Monday ArcelorMittal appeared to reject the offer by the Italian government to increase to 66% its share capital in the former ILVA steelworks in a bid to ensure production continuity at the struggling plant.
    "The government delegation proposed to the company's top management to underwrite a share capital increase, amounting to 320 million euro, in order to increase to 66% the participation of the public partner Invitalia, together with what is necessary to ensure production continuity," said a statement issued after a meeting between the parties in Rome.
    "The government has taken note of ArcelorMittal's unwillingness to take on financial and investment commitments, even as a minority shareholder, and has instructed Invitalia to take the consequent decisions through its legal team," the statement added.
    The steelworks have been beleaguered by long-running technical, environmental and financial problems but remain the biggest single employer in southern Italy. (ANSA).