Chicago is My Home

20
May

Esmark Says Acquisition Does Not Violate Contract For United Steelworkers

Author: Adam Fendelman, Category: Business

CHICAGO – Esmark in a Tuesday statement defended its negotiations with India’s Essar Steel Holdings by saying the proposed buyout does not violate its contract with the United Steelworkers union.

According to an Associated Press report, the union sent a letter to Esmark on Friday demanding the steelmaker abandon its negotiations. The United Steelworkers said the acquisition violates their contract’s “right to bid” clause. This allows workers veto power over any deal that changes control of the company.

Also on Tuesday, the Russian metals and mining company OAO Severstal offered to pay $668.8 million for Esmark, which is slightly less than Essar’s $670 million offer on April 30, 2008.

Esmark is run by Chicago Heights brothers James Bouchard and Craig Bouchard. Previously headquartered in Chicago, the steelmaker and distributor (and its recently purchased subsidiary Wheeling-Pitt) are now operated out of Wheeling, W.Va.

By Megan O’Neil