Roman Abramovich, the London-based Russian billionaire, is reportedly ready to finance a knockout bid by Severstal, the Russian steel company, in an attempt to break up its agreed €27bn ($34bn) alliance with rival Mittal Steel.

Abramovich, owner of Chelsea Football Club, is discussing financing with Severstal and its bankers Lehman Brothers and ABN Amro for an offer that could trump Mittal's hostile €34bn ($42.6bn) bid for Arcelor, according to Russian newspaper Vedomosti.