September 08, 2008

Celtic Resources rejects Severstal bid

It is reported that Irish prospector, Celtic Resources has rejected a 220 pence a share takeover offer from Russian miner and steelmaker Severstal.

Celtic Resources in a statement said that "The board unanimously rejected this approach as it considered this price significantly undervalued the company and its prospects. Celtic shareholders are strongly urged to take no action in respect of their shareholdings."

The offer price is below Monday's closing price of 228.5 pence and values the company, which said last week it had received a takeover bid at EUR 123 million.

Severstal had no immediate comment.

Severstal bought 22% of Celtic's shares last month and has since raised its stake to 26.6%.