RE: RE: RE: Severstal complains to the OSC too funDo not know why this did not paste, but here goes again. It is so ironic that Severstal is crying foul, too funny, they have been outsmarted by Frank Giustra. Polly was so on about him so far. Way to go Polly!
CJ
Severstal in bid for Crew Gold
By Mark Leftly
Sunday, 7 March 2010
Russian steel group Severstal will formalise a $400m (£265m) bid for Surrey-headquartered miner Crew Gold next week. Severstal must make a formal offer as it has 26.59 per cent of Crew's shares – beyond the threshold that forces a predator to make a bid.
However, the situation is complicated by rival shareholder Endeavour, run by Frank Giustra, the Canadian magnate and friend of former US president Bill Clinton. Endeavour owns more than 40 per cent of Crew, but bought the shares in Norway rather than Canada. Crew is listed in Oslo, Toronto and Frankfurt. Under Norwegian rules, Mr Giustra is not forced to make an offer.
It is understood that Severstal and several minority shareholders have complained to Canadian regulators that this is against the spirit of takeover rules.
Endeavour is not expected to accept Severstal's offer as the share price it represents is lower than Mr Giustra has paid for the stock.
Here is another article posted today
Russian and U.S. titans battle in gold war
By Andrew Leach
Last updated at 10:44 PM on 06th March 2010
A bitter shareholder battle has broken out over miner Crew Gold, pitting a Russian oligarch against a confidant of Bill Clinton.
Alexey Mordashov is chairman of Russian steel giant Severstal, which has built up a 26.6 per cent stake in Crew, based in Weybridge, Surrey. This week Severstal will invite Crew shareholders to sell it their shares.
Shares in Crew, which mines gold in Guinea are primarily listed in Toronto and under the rules of the Canadian exchange an investor with more than a 20 per cent stake is obliged to make an offer for the remaining shares.
Frank Giustra and Alexey Mordashov (right) have built up stakes in Crew Gold
However, there are loopholes. Rival investor Endeavour Financial has amassed a 40 per cent holding in Crew, but it has not made any general offer although it has secured three seats on the board.
That has sparked outrage among some sources close to the situation who claim that Endeavour is trying to take control of Crew by stealth and without paying a premium to the other shareholders. One of the new directors appointed to Crew is Frank Giustra, an adviser to Endeavour and a close friend of the former US President.
The Canadian financier is a member of the board of trustees of the Clinton Foundation charity and in 2007 he launched the Clinton-Giustra Sustainable Growth Initiative to fight global poverty.
Giustra is also a founder of Lions Gate Entertainment, the film producer behind hits including American Psycho, Gods And Monsters and Fahrenheit 9/11.
Endeavour, which is also listed in Toronto, was established in 1988 by its chief executive Neil Woodyer, a former executive with Lloyds bank and a fellow of the Institute of Chartered Accountants in England and Wales.
Mordashov, Severstal's controlling shareholder, is an ally of Russian Prime Minister Vladimir Putin. Severstal, whose shares are listed and traded in London, is no stranger to a fight after losing out to tycoon Lakshmi Mittal in a bid battle for European group Arcelor four years ago in a deal that created the world's biggest steel company.
Although Crew, valued at £423 million, is small compared with that £18 billion deal, Severstal has plans to expand its gold mining interests and the company said earlier this month that it might buy more foreign assets.
Crew has a secondary share listing in Oslo and Severstal has pitched its tender offer for the shares it does not own at 1.1 kroner (12p). While this is below the 1.82 kroner (20p) per share closing price last week, the price has shot up from a low of 0.56 kroner (6p) in January.
Some observers believe the share price could weaken if the battling shareholders stop buying, but Endeavour said last month that it was likely to continue adding to its position.
Woodyer said at the time: 'We believe Severstal's increased ownership interest supports our view that Crew remains undervalued.'
Severstal was not available for comment last week while Crew and Endeavour failed to return calls.
Too Funny