The Russian steel producing and mining group Mechel has been unsuccessful in its bid to buy the remaining 28.79 percent stake in coal producer Elgaugol from minority shareholders, following the latter's rejection of the Mechel offer.
On November 22, 2007, Mechel submitted an offer to Elgaugol's minor shareholders, offering to pay Ruble 14,760.44 (about $600) per share. However, the company's minor shareholders have decided not to exercise their right to sell their shares.
As previously reported by SteelOrbis, on October 5 Mechel won the auction for a 68.86 percent stake in Elgaugol and a 75 percent minus one share stake in Yakutugol, both of which are located in the Russian Federal Republic of Sakha Yakutia (Yakutia).