THE battle between Chelsea soccer club owner Roman Abramovich's Evraz Group and Perth Glory owner Tony Sage's Cape Lambert Iron Ore for Pilbara iron ore cash has taken another turn, with the Russian steelmaker asking for a seat on Cape Lambert's board.
The move comes as Cape Lambert is understood to have agreed to buy a Sierra Leone iron ore project, in a part or all equity-funded purchase that would reduce Evraz's 19.9 per cent stake in the Perth junior.
Evraz, yesterday told Mr Sage that it wants a board seat and also that it wants to stop the already approved return of up to $100 million to shareholders from the recent sale of Pilbara tenements.
Perth-based Cape Lambert is convinced Evraz wants a controlling stake in the junior to direct $400 million received from the sale of the Cape Lambert iron ore project back into developing the project.
For Evraz, which owns 75 per cent of the project, to boost its stake to 50.1 per cent would cost less than $60 million at the current share price.
There is bad blood between the two companies after Evraz gained access to Cape Lambert's books earlier this year by indicating it was looking to buy the junior to block the sale of the project to China Metallurgical Group Corp.
Evraz then shocked Mr Sage by voting to approve the sale and, not long after that, striking a deal with MCC to take 75 per cent of the project.
Mr Sage has contended the Chinese and Russians had it planned from the start, while Evraz says it simply saw a better opportunity as things developed.
Mr Sage yesterday hit out at Evraz, which notified reporters it was seeking board representation yesterday, the same day Cape Lambert was faxed the letter.
"I am completely astounded a company like that would do that through the press rather than ringing us and finding out what our answer is," Mr Sage, Cape Lambert's managing director, said.
He said that until contacted by reporters he had planned to write back to Evraz to say the request would be considered at the next board meeting late this month.
Mr Sage said one of the requests in the letter was that Cape Lambert not pay the $100 million back to shareholders.
Evraz is a Russian steelmaker listed in London and part-owned by Mr Abramovich, Russia's second richest man who is worth more than $20 billion.
Cape Lambert's purchase of the Sierra Leone project is expected to be announced today to the Australian Stock Exchange.
Cape Lambert shares rose 3c to 52.5c yesterday."
CFE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)