Arbitrator sets aside Essar’s Esmark bid
US steel maker Esmark on Wednesday 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.
By Agencies |
NEW YORK: US steel maker Esmark on Wednesday 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 decision holds significance as United Steelworkers (USW), the umbrella union of industry workers in the US, has been opposing the Essar offer and backing a bid from Russia���s Severstal.
However, the arbitrator denied all remedies sought by the USW, other than setting aside this MOA, Esmark said. Following the development, Esmark said in a regulatory filing that it has agreed to extend the USW right to bid period for another three days to June 26. In view of the arbitrator���s decision, USW would now have to come up with a competing offer for Esmark until June 26, failing which Essar could revive its earlier bid, which has already been approved by the Esmark���s board.
However, the arbitrator denied all remedies sought by the USW, other than setting aside this MOA, Esmark said. Following the development, Esmark said in a regulatory filing that it has agreed to extend the USW right to bid period for another three days to June 26. In view of the arbitrator���s decision, USW would now have to come up with a competing offer for Esmark until June 26, failing which Essar could revive its earlier bid, which has already been approved by the Esmark���s board.
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