MMK walks away from Flinders

Russian steel maker Magnitogorsk Iron and Steel (MMK) officially walked away from its 30¢ a share takeover bid for Flinders Mines on Tuesday, citing “continuing uncertainty" over court action brought against it by a single shareholder.

Elena Egorova, who holds less than 1 per cent of MMK’s shares, challenged the takeover under Russian laws that allow any shareholder to initiate court proceedings if they believe a transaction will cause the company financial pain. MMK’s decision to walk comes after a Russian court suspended its hearing of the case until past the June 30 quit date for the scheme of arrangement.