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Wednesday, January 2, 2013

ArcelorMittal to sell $1.1bln stake in Canadian unit, (NYSE: PKX)

ArcelorMittal, the world's biggest steelmaker, will sell a 15 percent stake in one of its Canadian iron ore operations, raising $1.1 billion to help pay off debt at a time of sluggish demand.The group, which makes about 6-7 percent of the world's steel, will sell the stake in ArcelorMittal Mines Canada to a consortium including South Korean steelmaker POSCO and Taiwan-listed China Steel, it said on Wednesday.It is the latest in a series of steps to raise funds as slow global economic growth and spending cuts in Europe dampen demand for steel used in the car and construction industry."It's one of the more readily disposable parts of the business, and given they need to reduce debt I don't think its a massive surprise they are selling it," said Nomura analyst Neil Sampat.

POSCO is a Korea-based company engaged in the manufacture of steel products. Shares of PKX remained unchanged at $82.15. In the past year, the shares have traded as low as $71.32 and as high as $95.27. On average, 187932 shares of PKX exchange hands on a given day and today's volume is recorded at 0.