A hearing date has been set on May 24 for a lawsuit filed by a minority shareholder of the Magnitogorsk Iron and Steel Corporation over the company’s attempted purchase of Australian iron ore mining company Flinders Mines.
The lawsuit was filed by Elena Yegorova, who argued that the proposed transaction involved significant financial and operational risks, negatively affecting the return on her investment. She said that the MMK board approval of the sale infringed upon her rights as a minority shareholder, RapsiNews.com reports.
In response to the lawsuit, the Chelyabinsk Regional Commercial Court imposed an injunction on MMK’s March 30 resolution approving the Flinders purchase. The Chelyabinsk Regional Court scheduled the upcoming May 24 hearing on Wednesday following preliminary hearings.
MMK had originally sought to purchase Flinders Mines for $537 million in November. The proposed purchase was endorsed by nearly all regulatory authorities, and MMK shareholders voted to approve the purchase in late March, RapsiNews.com reports.
Magnitogorsk Iron and Steel is the third largest steel company is Russia and is headquartered in Magnitogorsk.