Ruias' Essar withdraws $1.2 bn bid for Esmark
Ruia's Essar withdrew its bid for acquisition of US steel co Esmark in the face of a higher bid by Russian steel giant Severstal.business Updated: Jun 26, 2008 10:31 IST
Ruias controlled conglomerate Essar on Thursday, withdrew its $1.2 billion bid for acquisition of US steel company Esmark in the face of a higher bid by Russian steel giant Severstal which is supported by the Union.
"We have withdrawn our bid...We will keep on looking for opportunities for global expansion," an Essar spokesperson said.
Essar has raised its bid from 17 dollar to 19 dollar a share, but Severstal came up with a higher bid of 19.25 dollar per share.
Sources said, Severstal has got the support from the Unions of the US steel company.
Esmark Inc had yesterday said an independent arbitrator has set aside a bid for the company from Essar Steel, saying that the target company did not inform the workers' union sufficiently in advance about the deal.
The arbitrator's decision holds significance as United Steelworkers (USW), the umbrella union of the industry workers in the US, has been consistently opposing the Essar Steel offer and has instead backed a rival bid from Russia's Severstal.