US-based DBO Holdings, Inc. has initiated legal action against Russian steelmaker Novolipetsk Steel (NLMK) claiming that it reneged on its proposed acquisition of John Maneely Company.
The suit in question was filed on October 15 at the US District Court for the Southern District of New York. DBO Holdings alleges that NLMK breached the terms of its merger agreement and is seeking to obtain damages in an amount to be determined by the court, an order to compel NLMK to fulfill its obligations under the merger agreement, and an award of costs and such other relief as the court may grant.
According to an NLMK release, the Russian producer has not closed the $3.5 billion transaction as there have been disagreements concerning the rights and obligations of the parties under the merger agreement.
NLMK has retained legal counsel in New York, and intends to defend itself vigorously against the claims.