Mittal Steel plans to continue with its offer for Arcelor but could end up with a lower stake in the company than it has been seeking, in light of the European groupâs proposed EUR 13 billion merger with Severstal of Russia. Mittal Steelâs hopes of pulling off a EUR 25.8 billion merger with Arcelor in the coming months were dashed on 26 May 2006 when it emerged that Severstal had become the Luxembourg groupâs âwhite knightâ?. Under the plan, Arcelor would acquire close to the 90% of Severstal and other steel and mining assets owned by CEO Mr Aleksei Mordashov, who in return would receive a 32% stake in what would be the worldâs largest steelmaker.