The US-based steel producer Esmark Incorporated (Esmark) has announced that its board of directors has rejected an acquisition bid by Russian steelmaker Severstal after finding this producer's offer of $17.00 per share inadequate in a number of respects.
Accordingly Esmark's BoD has recommended to its shareholders that they should not tender any shares to Severstal.
The BoD's recommendation was based on a number of factors, including the recently revised offer from Indian steelmaker Essar to acquire all outstanding shares in Esmark for a consideration of $19.00 per share.
Yet, as Esmark's chairman and CEO James P. Bouchard stated, Esmark is continuing to invite bidders, including Severstal, to provide a superior offer to that of Essar. "To date, Essar has stepped up to the plate for our stockholders - first in providing financing to the company at a critical time and now by announcing that it will increase its offer to $19 per share. In addition, Essar has committed to provide over $500 million of capital investment in the Ohio Valley," concluded Mr. Bouchard.