indias-essar-moves-into-the-lead-for-us-esmark

India's Essar moves into the lead for US Esmark

US steelmaker Esmark endorses EssarÆs improved takeover offer of $750 million and takes steps to ensure the sale, including introducing a poison pill and filing a law suit against the dissenting workers' union.

By Sameera Anand

June 15, 2008

US steelmaker Esmark is adopting a multi-pronged strategy to sell itself including a poison pill, a law suit against the dissenting workersÆ union and an endorsement of Indian steel conglomerate EssarÆs improved takeover offer of $750 million.

On June 13, West Virginia-headquartered steel services company Esmark introduced a defence measure commonly known as a poison pill. Esmark now has the right to issue more shares to existing shareholders if a hostile acquirer buys more than 15% of EsmarkÆs outstanding shares and therefore dilute the holding of the hostile acquirer.

ôWe believe the adoption of the stockholders rights agreement will level the playing field among bidders and help maximise shareholder value as we move forward with...

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