December 20, 2006

Mittal Extends Stake in RAB Capital

-- By Pushpa Sathish, Staff Writer

Recently in the news for his hostile takeover of the steel giant Arcelor and for the subsequent creation of the world’s largest steel manufacturing plant, Arcelor Mittal, Lakshmi Mittal is making headlines again. The richest Indian is spending some of his wealth on the hedge fund industry with an investment in the London-based RAB Capital.

The Mittal family, which already owns a 3.5 percent stake in RAB Special Situations, the largest hedge fund managed by RAB Capital, has upped its share to 6.2 percent, with the option to increase it to 7.9 percent. According to information provided to the London Stock Exchange by RAB Capital, Mittal now owns another 10 million shares of the fund and also has the choice of buying another 10 million before April 30, 2007.

The investment seems to be part of the long-term plans of the Mittal family, with no redemptions being allowed for a period of three years, and an advance notice period of one year for the next two years.

The shares were bought through the family’s investment vehicle Karrick Ltd. Mittal first associated himself with the hedge fund industry in June 2005 when he bought 18 million shares of RAB Capital. 

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RAB Capital is still doing very well.

Posted by: Richard Wilson | Nov 24, 2007 7:41:26 AM

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