New Delhi: In a new twist to the raging controversy over steel magnate L N Mittal's bid to take over giant Arcelor steel plant, Luxembourg has said it doubted his 'intentions' and questioned India's intervention in the issue.
Citing 'historical, cultural and economic attachment' to Arcelor, which is located in Luxembourg, its Ambassador Paul Steinmetz said Mittal should 'explain more' on why he was
taking the step that appeared more of a 'financial project rather than an industrial one'.
Steinmetz also brushed aside reports that India could back out on signing the Double Taxation Avoidance Agreement, saying the Finance Ministry, which was involved in the
talks on the pact, had conveyed nothing of that sort to his government.
"It is not a bilateral issue. It has not become one yet and I hope it will not become one," he said.
Emphasising that the issue concerned 'two European companies', he said the Luxembourg government had the right to intervene as it had the majority shares of 5.6 per cent in
Arcelor, the world's second largest steel maker after Mittal stee.
"As a share-holder, we (Luxembourg government) should raise voice... We cannot sit back," he said, adding, however, that 'the situation is different for the Indian government which is not a share holder. I don't see where India fits into it, except that Mittal was born in India."
"From legal point of view, we are the only government who really has a locus standi," he said.
"We are getting involved because we have 5.6 per cent shares. It is plain and simple. It is not only about jobs. We have the right to intervene," the Ambassador said.
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