OAO Magnitogorsk Iron & Steel (MMK) rose on speculation the court may strike down the steelmaker’s proposed takeover of Australia’s Flinders Mines Ltd. (FMS)
The shares climbed 3.1 percent to 9.533 rubles by 11:53 a.m. in Moscow, the highest intraday price since June 21. They led gains on the benchmark Micex index, which added 0.6 percent to 1,395.58.
The Russian steelmaker, known as MMK, saw its A$554 million ($566 million) takeover offer blocked after minority investor Elena Egorova won a court decision in March preventing the deal, claiming it discriminated against her interests as a shareholder. The case will be heard today at the Chelyabinsk court, which last month dismissed an appeal from MMK to lift the injunction on the deal.
“The shares are likely rising on the possibility of the deal’s cancellation,” Oleg Petropavlovskiy, an analyst at Broker Credit Service in Moscow, said by phone. “This would mean MMK won’t increase its spending and its credit profile will look better.”
MMK agreed to acquire the Adelaide-based iron-ore producer in November.
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