Severstal Reaffirms Offer to Acquire Esmark
06/20/2008 - OAO Severstal reaffirms its all-cash $17-per-share tender offer to acquire all outstanding shares of Esmark common stock.
OAO Severstal sent the following letter to the Esmark Inc. Board of Directors regarding Severstal's all-cash $17-per-share tender offer to acquire all outstanding shares of Esmark common stock.
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Board of Directors
Esmark Incorporated
1134 Market Street
Wheeling, WV 26003
Attention: Mr. James Bouchard, Chairman and CEO
Dear Mr. Bouchard:
We would like to reiterate our continued strong interest in acquiring Esmark Incorporated pursuant to our previously announced tender offer for all outstanding shares of Esmark common stock. We also believe that Severstal is uniquely positioned to promptly consummate an acquisition of Esmark, given the full and enthusiastic support of our proposal by the United Steelworkers and your majority shareholder.
We understand that the arbitrator in the United Steelworkers' right to bid grievance arbitration with Esmark may consider setting aside Esmark's Memorandum of Agreement with Essar Steel Holdings Limited.
If the arbitrator sets aside the Memorandum of Agreement, Severstal is aware of and understands Esmark's financing issues with respect to the loan agreements you entered into with Essar Steel and your other financing agreements. This is to confirm that we are prepared to immediately replace the Essar financing in a manner that satisfies Esmark's obligations to all credit parties and does not jeopardize Esmark's business.
We stand ready to conclude a transaction expeditiously.
We look forward to hearing from you.
Sincerely,
By /s/ Gregory Mason
Gregory Mason
Chief Operating Officer
OAO SEVERSTAL
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OAO Severstal, an international metals and mining company, focuses on high value added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. Severstal owns mining assets in Russia, thus securing its supplies of raw materials. In 2007, Severstal produced 17.5 million tons of steel. Revenues were $15.2 billion, EBITDA was $3.7 billion, and EPS was $1.92.
