Mumbai: Lakshmi Mittal, chief executive of steel giant ArcelorMittal, has proposed to acquire ailing Bulgarian steelmaker Kremikovtzi, which is majority owned by his brother Pramod Mittal.

Lakshmi Mittal has sent a letter to the Bulgarian prime minister expressing interest in the Kremikovtzi mill, Petar Dimitrov, economy and energy minister, said.

Mittal has also offered to carry out all necessary environmental upgrades, reports quoted Dimitrov as saying.

Ukrainian billionaire Kostyantin Zhevago and another Ukrainian Rinat Akhmetov, along with US Steel Corp, have also evinced interest in acquiring Kremikovtzi.

Zhevago holds 73 per cent stake in Ukrainian iron ore producer, Ferrexpo, which has the world's forth-biggest ore resource.

Akhmetov owns metallurgic firm Metinvest.

Media reports said Turkish steelmaker Erdemir and Swiss Duferco Group were also vying for the plant.

Pramod Mittal acquired 71 per cent stake in Kremikovtzi in 2005, while the Bulgarian government holds a 25 per cent stake in the mill.

Mittal is hard put to provide about 140 million euros required for environmental upgrades and working capital requirements of the company after the mill's debt climbed to $1.14 billion (1.67 billion levs) at the end of 2007.

Mittal is looking for a strategic investor and has appointed Merrill Lynch to advise on how to proceed.