ArcelorMittal, the world's largest steelmaker, said it would consider buying Turkish steelmaker Erdemir, lifting its shares on Tuesday.

A spokesman for ArcelorMittal, which on Monday said it had raised its stake in Erdemir to slightly below 25 percent from 11.3 percent, said: For now we understand that control is not available. Should this opportunity arise in the future, we would consider it very seriously.

Erdemir shares closed 5.2 percent higher on Tuesday, extending Monday's gains.

The stock is already trading above fair value, Mehmet Ilgen, sales trader at Ata Invest in Istanbul, said.

Erdemir's parent company, Turkish military pension fund Oyak, said on Saturday it was not seeking an industrial partner for Erdemir.

Oyak had once planned to buy Erdemir, formerly state-owned, in partnership with Arcelor but went ahead alone.

Separately, ArcelorMittal made a presentation to investors in which it said it expected its steel shipments to total 153 million tonnes in 2012 versus 116 million in 2007 and iron ore output almost to double to 110 million tonnes by 2012 from over 60 million tonnes in 2007.

ArcelorMittal is seeking to raise its own iron ore production to 75 percent of consumption in coming years.

The steelmaker also said it expected a positive impact of about $500 million from merger synergies in 2008.

At the end of the first quarter of 2008, ArcelorMittal reached its target of delivering more than $1.6 billion of synergies from the merger of former rivals Arcelor and Mittal Steel.

At 1430 GMT, ArcelorMittal shares were up 1.1 percent at 62.96 euros.

(Reporting by Julien Ponthus and Thomas Grove; Editing by Erica Billingham)

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