Arcelor bosses will meet this Sunday to decide on a 25bn euros (£17bn; $31bn) takeover by Mittal Steel or a merger with Russian firm Severstal.
They favour a deal with their Russian suitor, and Severstal improved its merger offer on Tuesday in the hope of appeasing Arcelor shareholders.
Analysts think the improved offer could force Mittal Steel to increase its bid.
Arcelor chief executive Guy Dolle has admitted that his company is waiting for "a better offer" from its rival.
On Wednesday afternoon Mittal said it had not made a new financial offer for Arcelor.
Shareholder concerns
The Arcelor board has unanimously rejected the current takeover bid from Mittal, the world's biggest steelmaker.
It has called the 13bn euros plan to buy Severstal "a more attractive alternative from a strategic, financial and social point of view", and has recommended that Arcelor's shareholders support the move at a meeting scheduled for 30 June.
Mittal Steel, which is headquartered and listed in the Netherlands, maintains that it is still in continuing and constructive talks with Arcelor.
It dismissed Severstal's latest concession, saying it "fails completely to deal with key shareholder concerns".
As a sweetener to Arcelor investors, Severstal improved its terms for the deal by raising its offer by about 2bn euros and reducing the stake that its chief executive, Alexei Mordashov, would take in the merged group.
Should Arcelor buy Severstal, it would create the world's biggest steelmaker with a turnover of 46bn euros.
^ Back to top | BBC Sport Home | BBC Homepage | Contact us | Help | ©
~RS~q~RS~~RS~z~RS~56~RS~)