August 30, 2008

Wheeling Pitt plans vote on merger with Esmark

It is reported that The Securities and Exchange Commission has signed off on the impending merger of Wheeling Pittsburgh Steel and Esmark, and now shareholders will get to decide how they are compensated. Wheeling Pittsburgh said that the company has called a stockholder meeting for November 27th 20007, to consider and vote on the merger.

The Securities and Exchange Commission had asked for some changes in the time frame for shareholders to make their decision about compensation. The agency could have required the company to essentially start the whole process over if the changes weren't made. Rather than allowing Wheeling Pittsburgh shareholders to choose how they'll be compensated for their stock after they vote on the deal, the newly amended merger requires them to decide beforehand.

Wheeling Pittsburgh shareholders can choose between standing pat; keeping their original stake and buying new shares at USD 19 apiece; or selling to Esmark for USD 20 in cash.

Esmark and Wheeling Pittsburgh agreed to the merger in March after Esmark seized control of the Wheeling based steelmaker in a proxy battle.

The merger is expected to close in the fourth quarter of 2007.