STOCKS NEWS EUROPE-ArcelorMittal rebounds on loan talks

Shares in ArcelorMittal (ISPA.AS) rebound after it confirms that it is in talks with its main banks to shift by a year its loan covenant debt/EBITDA limit of 3.5 times.

The shares are 3.1 percent stronger at 21.65 euros after a 4.8 percent drop on Wednesday, against the DJ Stoxx European basic resources index gain of 3.2 percent. The sector is generally buoyed by Alcoa Inc's (AA.N) better than expected second-quarter results.

Reports of ArcelorMittal's talks with banks hit the stock on Wednesday on the fear that the company lacked confidence in a steady recovery in the second half of the year, but a number of brokers argued the sell-off was overdone.

"The news can be taken both ways," says Andrew Snowdowne of UBS. "At the moment prices are rising and restocking is taking place ... so they are renegotiating in a stronger position." For more double click on [ID:nL868572]

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