MMK's $557m Flinders acquisition blocked by minority shareholder [UPDATE]
Apr 03, 2012 | 10:10 AM
The A$554 million ($577 million) acquisition of Australian iron ore miner Flinders Mines by Russian steelmaker Magnitogorsk Iron & Steel Works (MMK) has been blocked by a lawsuit filed by a minority shareholder, the Russian company revealed on Tuesday April 3.
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The MMK shareholder claims the deal discriminates against her interests, as it will allegedly lead to “financial and operational risks for Magnitogorsk and therefore adversely affects the plaintiff’s investments in MMK shares”, the company reported.
The shareholder has a stake smaller than 0.001% in MMK, according to a source with knowledge of the situation.
MMK, Russia’s third-largest steelmaker, said it regards the complaint as groundless. A spokesman said the company “is doing its best to eliminate the obstacles preventing it from finalising the [Flinders] deal”.
Flinders shareholders voted in favour of the transaction on March 30, and....
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