Monday, June 30, 2008

Goldman Sachs adds Lakshmi Mittal to their board of directors

The world's largest investment bank, Goldman Sachs has elected steel tycoon, Mittal as an independent director. He will serve on its Audit, Compensation and Corporate Governance and Nominating committees. This surely is another feather in his cap. As said by Chirag in his earlier post on Goldman Sachs, it is only investment bank to have avoided the subprime muddle. Good to have an Indian on the board of such a reputed firm.

Besides Goldman  Sachs, he also serves as a director of Airbus maker European Aeronautic Defence & Space NV and ICICI Bank Ltd. of India. Though it is very common to have one person on two boards, famous persons are sometimes added to the board to add credibility to the company and boost shareholders' confidence. Bill Gates was elected to Berkshire Hathaway(run by world's richest man Warren Buffett) way board back in 2004. Alain Belda, chairman of Alcoa Inc. has been elected to IBM Board of Directors effective July 29, 2008.

Mittal founded Mittal Steel Co. in 1976.  Currently, he is the chairman and chief executive of ArcelorMittal which was formed as a result of his acquisition of Arcelor SA in 2006. Unofficial reports suggest that Mittal is keen to takeover the Rio Tinto mining group to secure larger supplies of iron ore. Bankers believe that Rio's iron ore assets are currently worth about $50 billion[thats one of the biggest.......mind you!!]. However, this figure might go down in the coming months, if the steelmaking boom starts to die out.

I think that he has only 2 options : either buy directly from existing shareholders or wait until the assets of Rio go on auction!! I am sure waiting for you to say something (on lakshmi mittal obviously) at our comments page.

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