Mittal Steel Company has been disallowed to run in the next stage of the tender to purchase the Czestochowa Steel Mill in Poland.
 
Owned by London-based Indian steel magnate L.N. Mittal, the company has already acquired 70 percent control of steel production in Poland by buying other steel mills in the last three years.
 
Mittal's company was successful in its tender for the Czestochowa Mill last December but it was cancelled after a complaint by its rival, the Ukrainian Donbos.

Donbos had charged Polish authorities of malpractice in overlooking the Ukrainian bid.
 
The tender was floated again this year in March and the Mittal Steel Company had offered to pay around $28 million more than its rival. But somehow the company could not satisfy the compensation demands of its employees.
 
Now the Polish government is negotiating with Donbos, which meanwhile has agreed to match Mittal's price and the employees too seem satisfied with the compensation clause. But the final signature was yet to be signed.
 
Observers here feel the Polish government is trying to please the new Ukrainian government for its support to the European Union after the "Orange Revolution" in the former Soviet republic.