July 25, 2008

ArcelorMittal files suit against Esmark/E2

ArcelorMittal announced that it filed suit against Esmark Inc, E2 Acquisition Corporation in the Supreme Court of the State of New York.

The release said that “ArcelorMittal is seeking in excess of USD 540 million in connection with Esmark/E2's breach of its August 1st 2007 contract to purchase the Sparrows Point steel manufacturing facility from ArcelorMittal for USD 1.35 billion. That contract was terminated on December 16th 2007, after Esmark/E2 failed to complete the transaction.”

Sparrows Point was sold to OAO Severstal for USD 810 million, net of debt on May 7th 2008.