MMK Won’t Move on Flinders Bid Until Court Decides, Deal Expires
OAO Magnitogorsk Iron & Steel (MMK), the steelmaker whose proposed takeover of Australia’s Flinders Mines Ltd. (FMS) has been blocked by a Russian court, won’t take any further action on the bid until the case is heard on July 2.
“Magnitogorsk’s decision on its future actions regarding the agreement will be taken only when the results of the court hearings are known,” Kirill Golubkov, a spokesman, said today by phone. The offer period ends June 30, meaning it will expire before Magnitogorsk makes any decision on extending the bid.
The Russian steelmaker, known as MMK, saw its A$554 million ($558 million) takeover offer blocked after minority investor Elena Egorova won a court decision in March preventing the deal, claiming it discriminated against her interests as a shareholder.
The case will be heard at the Chelyabinsk court, which this month dismissed an appeal from MMK to lift the injunction on the deal. MMK agreed to acquire the Adelaide-based iron-ore producer in November.
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