London: : LNM Group headed by India-born steel tycoon Lakshmi Mittal has teamed up with former rival US Steel to make its bid for control of Ukraine's biggest steel-maker Kryvorizhstal, which is expected to be privatised next month.

Ispat Karmet, a member of LNM Holdings operating in Kazakhstan, and Ispat Polska Stal, another member of LNM Holdings operating in Poland, will also be part of the consortium, a spokesperson of LNM said in London today (May 26, 2004).

Kryvorizhstal is Ukraine's leading steel company, producing in excess of six million tonnes annually.

According to the tender issued by the State Property Fund of Ukraine (SPF), 93.02 per cent of shares in the Open Joint Stock Company will be sold in the privatisation.

Ukrainian Government has set a starting price of $ 714 million for the tender, but it is thought that the bidders will be prepared to pay up to $ one billion for Kryvorizhstal's iron ore mines and six million tonnes of annual steel production.

Bids are to be submitted by June 4 and the Government is expected to make a decision by June 11.

Commenting on the joint bid, Lakshmi N Mittal, chairman of LNM Group, said, "Together, LNM and US Steel can offer a very strong partnership for Kryvorizhstal and we hope this strength will be recognised by the State Property Fund in Ukraine. There has been much comment over the criteria for the current tender process."