June 18: Russian steel maker Severstal has pledged to continue with its takeover bid for Esmark in the US, despite Esmark’s board favouring an offer by India’s Essar.
Last week, Esmark, which owns the Wheeling Pittsburgh mill in West Virginia with capacity to make some 200,000 tonnes of tin mill products for canmaking, rejected Severstal’s bid as “inadequate”.
In a letter to Esmark’s chief executive James Bouchard this week, Severstal’s International chief Gregory Mason wrote: “We were disappointed with your Board’s recommendation to Esmark’s shareholders concerning our tender offer.
“We also believe that your Board has in reality tipped the scales in favor of a transaction with Essar in a number of significant respects,” said Mason.

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