(Bloomberg) -- ArcelorMittal SA is protesting the Italian government's move to put the country's biggest steel mill under special administration, saying it may be in breach of an agreement.
Luxembourg-based ArcelorMittal was not informed of a decision by state investment unit Invitalia to file a request for special administration for the Acciaierie d'Italia SpA works, according to a letter from the steelmaker seen by Bloomberg News.
The company has in recent weeks engaged with the government in a bid to reach an agreement for an orderly exit from the plant, formerly known as Ilva, the letter says.
A London-based representative for ArcelorMittal declined to comment. A representative for Acciaierie d'Italia also declined to comment.
Read More: Italy Set for ‘Drastic Move' to Nationalize Top Steelmaker
The letter underscores a simmering dispute between Prime Minister Giorgia Meloni's government and the multinational, which owns 62% of the Italian plant, with Invitalia holding the remainder.
Rome has argued that Acciaierie d'Italia is a vital national asset, which subjects the plant to state powers that allow the government to override private investors and place companies under special administration.
This type of insolvency, generally applied to large entities subject to some degree of government oversight, allows businesses to stay afloat during the administration process.
Meloni's government has taken an active approach to corporate affairs, assuming leading roles in deals to buy Telecom Italia SpA's network and to sell off a stake in ITA Airways, while also moving to restrict the role of Chinese owners at tiremaker Pirelli SpA.
Read More: Giorgia Meloni Looks to Cement Power by Remaking Corporate Italy
The letter comes ahead of a meeting between government officials and union representatives scheduled for Monday evening.
--With assistance from Thomas Biesheuvel.
(Updates with Arcelor protest on accord in first paragraph.)
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