The dividend is one of the largest ever paid to a family-run business and comes amid strong profits for Mittal Steel.

The Sunday Telegraph reported that the firm plans to pay a dividend of 40 cents a share.

Mr Mittal and family own 97% of the firm, and this would give them $260.8m. Mittal Steel is worth over $25bn.

World's richest

The planned dividend payout reinforces Mittal's position as one of the richest businessmen in the world.

He is also one of the richest living in the UK, and last year bought the most expensive house ever sold in London, for �70m.

Other non-British billionaires living in London include Roman Abramovich, the Russian oil baron and owner of Chelsea football club.

Mr Mittal is thought to have taken �2bn out of the business in October, following the creation of Mittal Steel after Mr Mittal agreed a $4.5bn takeover of International Steel Group.

This deal is expected to complete within a few months and will reduce the Mittal family's stake in Mittal Steel to 88%.

Strength of steel

Mittal Steel is making money from soaring oil prices

Last week, Mittal Steel said its profits had soared 298% to $4.7bn on sales up 132% to $22.2bn following the acquisition of several new plants and soaring world prices for steel.