Severstal makes its [Es]mark

May 2008 | M&A News Alert

Just days after the United Steelworkers Union (USW) threatened to block an offer from India's Essar Steel Holdings , Russian steel maker Severstal has made a rival bid of US$1.24bn for US Steelmaker Esmark Inc . Esmark, which last year acquired US steelmaker Wheeling-Pittsburgh , had been reviewing an offer from Essar, but has stated that the agreement "is now subject to a competing bid". Esmark has stated that 'Essar and Severstal are both excellent companies and Esmark CEO Jim Bouchard will be reaching out to Severstal International CEO Gregory Mason to discuss the offer and how to provide the greatest value for shareholders'. Essar's offer similarly offered US$17 per share and the assumption of US$400mn in debt.

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