31/05/2012 - 13:09

Flinders Russian trial drags on

31/05/2012 - 13:09


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Flinders Russian trial drags on

A legal battle delaying a $554 million Russian takeover of iron ore miner Flinders Mines is continuing to drag on, with an appeal from Flinders Mines adjourned until June 6.

Flinders Mines, which has projects in the Hamersley Ranges in the Pilbara region of WA and the mid west region, and Magnitogorsk Iron & Steel Works OJSC (MMK) have agreed to terms on a takeover, which was scheduled to be completed by June 30.

But a minority MMK shareholder has taken legal action in Russia, arguing the takeover presented operational and financial risks to MMK.

Those prceedings have been adjourned to July.

An appeal by Flinders Mines had its first hearing in Russia yesterday and was adjourned until June 6, Flinders said today.

If the appeal was successful, the injunction obtained by the minority MMK shareholder would no longer prevent the takeover from proceeding.

If the appeal fails, Flinders has said it would exhaust all avenues under the agreement to complete the transaction.


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