Friday, September 08, 2006

Severstal acquisition of Lucchini

Severstal has announced its intention to increase its equity stake in Lucchini SpA to 70.82% by purchasing, from a company controlled by Mr Mordashov, a 50.82% equity stake for a total consideration of Euro 550 million consisting of a cash component of Euro 182 million and balance by assumption of debt, in addition to the 19.99% equity stake in Lucchini Severstal already owns. The transaction is expected to close in October 2006, and it is expected that thereafter Lucchini will be consolidated in Severstal’s accounts.

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