Three investors in steel giant Arcelor SA asked a Dutch court Wednesday to block the company’s proposed $40 billion takeover by Mittal Steel Co. NV, saying that revised terms have cost them $205 million.

The steel companies already call themselves ArcelorMittal, but three hedge funds — SRM Global Master Fund Ltd., Trafalgar Catalyst Fund and Trafalgar Entropy Fund — want to block the first phase of the deal under which Mittal is to combine with ArcelorMittal SA, a holding company.