Russia’s Severstal matches Essar Steel offer for Esmark

Russia’s Severstal matches Essar Steel offer for Esmark
Comment E-mail Print Share
First Published: Wed, May 21 2008. 12 23 AM IST
Updated: Wed, May 21 2008. 12 23 AM IST
Moscow: Russia’s largest steelmaker, OAO Severstal, bid $668 million (Rs2,852 crore) for Wheeling, West Virginia, US-based Esmark Inc., matching an offer from India’s Essar Steel Holdings.
Severstal offered $17 a share for Esmark, the Cherepovets, Russia-based steelmaker said in a Regulatory News Service statement on Tuesday.
The offer has “full and enthusiastic support” from the United Steelworkers union, the Russian company said. On 16 May, the union rejected the offer from Essar.
Severstal, which is also the fourth largest steelmaker in the US, agreed 16 May to buy Warren, Ohio-based WCI Steel Inc. for $140 million in cash. It agreed in March to buy ArcelorMittal’s Sparrows Point plant in Baltimore for $810 million.
Severstal has added as much as 12 million tonnes of steelmaking capacity in North America and Europe in the past four years, Gregory Mason, its chief operating officer, said on 14 April.
The value of Severstal’s offer was calculated using the 39.3 million shares that were outstanding as of 28 November, according to data compiled by Bloomberg.
Merrill Lynch and Co. is acting as lead financial adviser, Severstal said.
Comment E-mail Print Share
First Published: Wed, May 21 2008. 12 23 AM IST