Mechel may bid $2.15 billion for MMK
Russian steel producer Mechel Steel Group is reportedly intending to bid as much as $2.15 billion to increase its stake in Magnitogorsk Metal Works (MMK). As previously reported by SteelOrbis, Mechel Steel announced that it wanted to increase its current 16% stake in MMK to over 20%. However, the amount of bid Mechel planned to offer for MMK was not disclosed. The federal government will open the auction for MMK on December 22, 2004. Mechel announced that it plans to offer as much as $2.15 billion, which is almost three-fold of the starting price of $790 million. Moreover, Novolipetsk is planning to take part in the auction.