Arcelor's Board of Directors met on Sunday, June 25, to evaluate and compare proposed revisions to the strategic alliance with SeverStal; and proposed improvements to Mittal Steel's offer. The Board is unanimously recommending Mittal Steel's improved offer, which consists of a merger proposal effected by way of a mixed share and cash offer that will be followed by the merger of Mittal Steel into Arcelor. The new group, would be called Arcelor-Mittal.

The Board says that the proposed merger agreed to by Arcelor and Mittal Steel provides an additional, significant increase in value to shareholders (+10%). Mittal Steel's newest offer is 49% improved over its initial offer and a premium of approximately 100% (excluding dividend) on the closing price of Arcelor shares on the day preceding announcement of Mittal Steel's starting offer. The Board notes that Arcelor continues to be opposed to the sale of Dofasco.

In a separate press release, SeverStal expressed its surprise to the Arcelor Board's endorsement of Mittal Steel's revised offer. "Since we signed our merger agreement with Arcelor on May 26th, we have proceeded in good faith with our partners to provide a compelling value proposition to shareholders. In response to feedback from investors, we have also substantially improved the merger terms." SeverStal says that it is now reviewing all of its options.