Alexey Mordashov, the Russian tycoon who is CEO of Russian steelmaker Severstal and owner of Italian steel producer Lucchini Group, may be ready to sell Lucchini for a single euro, according to the Italian business magazine Il Mondo. The Italian group has reportedly given a mandate via the legal firm Freshfields to its creditor Banca IMI, which would give the bank the right to buy 100 percent of Lucchini shares for as little as one euro.
By the end of February, a court in Milan will have to take a decision upon Lucchini's financial recovery plan, aimed at freeing cash from the sale of the steelmaker's French subsidiary Ascometal, amounting to €360 million, of which €260 million would remain at Lucchini's disposal. With this cash injection, the Italian steelmaker could hold out for another four or five months. However, before the end of June the group would need to find a new partner.