ArcelorMittal Sues Esmark
Posted on: Tuesday, 13 May 2008, 00:00 CDT
By The Associated Press
BALTIMORE - ArcelorMittal SA, the world's largest steelmaker, has filed a lawsuit against steelmaker and distributor Esmark Inc. over the aborted sale of the Sparrows Point steel mill near Baltimore last year.
Luxembourg-based ArcelorMittal claims that Wheeling, W.Va.-based Esmark breached its August 2007 contract to purchase the plant near Baltimore for $1.35 billion. The proposed sale fell through in December because of financing problems.
The lawsuit, filed Thursday in New York's Supreme Court, seeks $540 million in damages.
Esmark and subsidiary E2 Acquisition Corp., accused of breach of contract, said Friday they have not received or reviewed a copy of the complaint but were "surprised and disappointed that ArcelorMittal would file such a frivolous lawsuit."
Esmark argues ArcelorMittal failed to meet various conditions required to close the transaction, including winning the approval of the United Steelworkers for the deal. Esmark "will vigorously defend against the lawsuit and pursue any claims it has against ArcelorMittal," its statement said.
(c) 2008 Charleston Gazette, The. Provided by ProQuest Information and Learning. All rights Reserved.
Source: Charleston Gazette, The
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