June 23, 2008

Russian Firm Disappointed in Esmark

WHEELING - Russian steelmaker OAO Severstal says it's disappointed in Esmark Inc.'s tactic to stave off a $670 million takeover bid, saying the move tips the scales to an India-based steel producer.

The metals and mining company's offer to purchase Esmark is backed by the United Steelworkers union, but the Wheeling-based company is interested in Essar Steel Holdings Ltd.'s $750 million offer.

Severstal's comments follow last week's decision by Esmark's board to adopt a stockholders rights agreement. The so-called "poison pill" agreement would allow Esmark to issue more stock if a stockholder acquires 15 percent or more of Esmark's common stock.

- The Associated Press

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