https://www.bloomberg.com/apps/news?pid=20601082&sid=aeHe1FRiVi4w
Severstal Says Its High River Offer Is a ‘Valuable Opportunity’
By Ilya Khrennikov
July 1 (Bloomberg) -- OAO Severstal, Russia’s largest steelmaker, said its offer to minority investors of High River Gold Mines Ltd. is a “valuable opportunity.”
Sergei Loktionov, a spokesman for Severstal’s resources unit, made the comments in an e-mailed statement today. He was responding after Toronto-based High River investors including Sprott Asset Management, Firebird Asset Management and UFG Asset Management said the Moscow-based steelmaker’s offer of C$0.22 ($0.19) a share is too low.
High River said last week in a filing it’s in default under two credit facilities, including one held by Severstal. High River said the Toronto Stock Exchange may consider suspending and delisting the company’s shares should the Severstal offer not proceed.
Dan Hrushewsky, a vice president at High River in Toronto, wasn’t immediately available for comment when Bloomberg News called today.
High River has three producing gold mines in Russia and one in Burkina Faso which produced a combined 220,000 ounces of the precious metal last year.
To contact the reporter on this story: Ilya Khrennikov in Moscow ikhrennikov@bloomberg.net
Last Updated: July 1, 2009 13:48 EDT