bold spirit - ArcelorMittal South Africa

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192 ArcelorMittal South Africa Annual Report 2010 29. SHARE-BASED PAYMENTS continued 29.3 ArcelorMittal Group Equity-settled Share-Based Payment Plans continued 29.3.1 Executive International Mobility Share Option Plan continued Exercise price range per option 2010 USD Outstanding option numbers 2010 Options Exercise price range per option 2009 USD Outstanding option numbers 2009 Expiry date details 2015 28.75 21 769 28.75 21 813 2016 33.76 20 886 33.76 8 680 2017 64.30 15 600 64.30 9 600 2018 82.57 9 732 82.57 8 000 2019 38.30 4 666 38.30 8 000 Total 72 653 56 093 1 Includes, at the reporting dates, those outstanding options received before and during the participants’ tenure as employees of ArcelorMittal South Africa. 2 Hypothetical scenario, assuming all instruments were to vest on 31 December (excludes out-of-the-money options, where applicable). Translated to ZAR using the closing exchange rate at 31 December. Details related to the individual holdings are contained in the Directors’ Remuneration Report. 29.3.2 Employee Share Purchase Plan The ArcelorMittal Group enables all employees within its group to participate in the Employee Share Purchase Plan. In terms of the plan, ArcelorMittal group shares (denominated in USD) are purchased at a discount to the ruling market price at grant date. The shares vest after three years. The charge to the group and company for the year amounted to Rnil 1 (2009: Rnil 1 ). 1 Rounding to zero due to the use of numeric reporting scale format of one million. Details of unvested shares as at 31 December 2010 are as follows: Vesting date 21 January 2011 Number of shares 77 Market price on grant date (USD) 21.71 Discounted market price (USD) 18.45 – 19.54
193 ArcelorMittal South Africa Annual Report 2010 Group 2010 Rm 2009 Rm 2010 Rm Company 2009 Rm 30. CONTINGENT LIABILITIES Contingent liabilities at the statement of financial position date, not recognised in these financial statements, are: • Face value of financial guarantee contracts issued in the normal course of business from which it is anticipated that no material liabilities will arise 1 4 24 44 Total 1 4 24 44 Alleged contravention of the Competition Act referred by the Competition Commission to the Competition Tribunal Two actions have been referred by the Competition Commission (the “commission”) to the Competition Tribunal (the “tribunal”), which remain unresolved at 31 December 2010: • the Barnes Fencing complaint lodged with the competition authorities; and • alleged prohibited practices in Long Steel Products, including reinforcing rebar, wire rod and sections (“Long Steel Products matter”). In both instances, the litigation processes have not progressed far enough to allow for an assessment to be performed of the amount at risk, if any, and the probability of its realisation. Barnes Fencing Industries Limited The case brought by Barnes Fencing Industries Limited (“Barnes Fencing”) before the tribunal, alleges that the company's pricing practices involving low-carbon wire-rod products amounted to price discrimination. It is alleged that the company charged the complainants substantially more for the product and that other respondents also benefited from more favourable payment terms. Barnes Fencing applied for orders against the company to terminate these practices and further applied for the imposition of an administrative penalty of 10% to be levied on the 2006 local revenue of low-carbon wire-rod products. The case before the tribunal is likely to be heard during the first quarter of 2011. Based on the current status of the litigation process, no provision has been raised and no contingent liability quantified. Long Steel Products matter The Commission investigated ArcelorMittal South Africa, together with four other primary steel producers in South Africa, in respect of alleged market collusion and price-fixing relating to certain long steel products. The allegations concern alleged possible contraventions of section 4(1)(b) of the Competition Act. The commission has requested that the tribunal impose an administrative penalty of 10% of the company’s 2008 revenue. In order for the company to appropriately plead to the allegations by submission of an answering affidavit, it submitted on 17 December 2009, an application to the tribunal for information and documents from the commission relating to the allegations, including documents from the leniency application upon which the commission relies in its referral to the complaint to the Commission. On 3 September 2010 the tribunal refused the bulk of the documents requested by the company, and in response ArcelorMittal South Africa filed a notice of appeal and an application to review the tribunal’s decision at the Competition Appeal Court. An application has also been filed to suspend the tribunal’s order that the company should file its answering affidavit pending the outcome of the appeal before the Competition Appeal Court. A date for the hearing of the appeal and applications is awaited. Based on the current status of the litigation process, no provision has been raised and no contingent liability quantified.
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Annual Report 2010 bold spirit
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bold spirit - ArcelorMittal South Africa

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