it seems to be back on!, page-22

Flinders shareholders await court blip
Nick Evans, The West Australian
April 11, 2012, 7:10 am
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Flinders Mines shareholders face an anxious wait to find out what will happen to the $554 million takeover of the company by Victor Rashnikov's Magnitogorsk.

The bid was all but a done deal until last week when it was derailed by a Russian lawsuit lodged by mystery minority shareholder Elena Egorova, who won an injunction against the Russian steelmaker on the grounds the takeover "discriminates against her interests as a shareholder" because it could lead to financial and operational risks for MMK.

Flinders shares tumbled on its return to the market, down as much as 20 per cent on Wednesday.

But Flinders returned to trading for the final two days of last week, before calling another halt early yesterday ahead of an announcement "regarding the Scheme Implementation Agreement between Flinders and MMK".

Russian court records show MMK is due back in court early tomorrow in a bid to have the injunction lifted.

Even if it is, it is unclear how quickly the deal can get back on track. MMK's board postponed a loan decision on borrowing for Flinders, and both companies will need to return to local courts for approvals.

It is the second time a European dispute involving MMK has spilled over into the takeover. In December, Eurasian Natural Resources Corp won a short-term freeze of MMK's Australian assets over an ore supply dispute involving MMK's Russian steel mills.