Mittal Steel (MT.N) raised its offer by a third and dropped a key demand for family control over the combined global steel giant.

In a surprise move on Friday, just a day after the hostile bid was formally launched, Mittal boosted its total value by 6 billion euros to over 24 billion euros ($30.7 billion).

A source familiar with the matter however said Mittal had considered raising its offer for more than a week, as Arcelor's share price traded at an increasing premium to its previous bid, implying Arcelor shareholders were unlikely to accept that offer.

Lakshmi Mittal, the world's fifth-richest man according to Forbes magazine, had previously said he would raise his bid only if he got a recommendation from Arcelor's board.

Mittal Steel said in a statement that it was now offering a choice between one new share and 11.10 euros in cash for each Arcelor share, 17 Mittal Steel shares for every 12 Arcelor shares, or 37.74 euros in cash for each Arcelor share.

If successful, Mittal Steel would become a global giant worth around $40 billion, employing 320,000 people and producing about 10 percent of the world's steel.

via New York Times

I wish Lakshmi Mittal all the best.