Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has announced that it has been issued with an injunctive relief order by the arbitration court of Chelyabinsk, preventing the company from implementing the acquisition of a 100 percent stake in Australia-based Flinders Mines Limited.
The court decision is a result of the complaint filed by an MMK shareholder, Elena Egorova, claiming that the purchase of Flinders will create financial and operational risks for the company, resulting in adverse effects for the plaintiff's investments in MMK shares.
MMK stated that the shareholder's action is ungrounded and the company is assessing the circumstances and the possible consequences.