ArcelorMittal has raised a bigger than expected $4 billion, selling shares and convertible bonds to strengthen its balance sheet, leaving the world’s largest steelmaker better placed to cope with tough markets.

“The major concern for Arcelor was the fact that they were struggling with their balance sheet. They were too leveraged. With this transaction they remove this balance sheet issue totally,” Petercam analyst Alan Vandenberghe said yesterday.

ArcelorMittal, whose credit rating was cut to “junk” status last year, had said on Wednesday that it planned to raise $3.5 billion to cut debt to about $17 billion by end-June from $22 billion on December 31st.

It said yesterday it had issued $2.25 billion in mandatory convertible notes with a 6 per cent coupon, and raised $1.75 billion selling shares at $16.75. – (Reuters)