BEIJING, June 22 (Xinhuanet) -- The Luxembourg-based steelmaker Arcelor, the world No. 2 steelmaker, said Wednesday in a statement its board would meet on Sunday to decide on its response to the merger proposals from Mittal Steel and Severstal of Russia and make a recommendation to shareholders.

    Shares in Arcelor had been suspended pending the statement from the group after French regulators had asked the company to clarify the state of its merger talks with both groups, according to a statement released by regulators.

    Arcelor, fighting off a 25.8 billion euros (33 billion dollars) bid from rival Mittal since January, announced a deal with Severstal last month that -- combined with a share buyback -- was viewed as a defense against Mittal.

    Earlier, Severstal's owner, Alexey Mordashov, announced that he was prepared to sweeten his merger terms with Arcelor following a hostile reception from its shareholders.

    The latest proposal would involve Severstal taking a 25 percent stake in the merged company rather than 32 percent as planned.

    The merger, announced May 26, would create the world's largest steel producer if it goes ahead. Enditem

(Agencies)