December 04, 2008

Wheeling Pitt merger vote set for Tuesday

Pittsburgh Tribune reported that Wheeling Pittsburgh Corp shareholders will vote next week on the proposed merger of Wheeling Pittsbugh Steel with Esmark Inc a combination that supporters say will create a new, profitable company. The long awaited shareholder vote caps a 16 month struggle.

The release added that stockholders have the option to elect one of three choices for their shares of Wheeling Pitt common stock

1. Receive USD 20 per share in cash

2. Receive a share for share exchange in the parent company of Wheeling Pitt and Esmark after the merger, plus a right to buy newly issued shares of New Esmark common stock at USD 19 per share

3. Receive a share for share exchange for New Esmark common stock.

In July 2006, Chicago based group of steel services companies Esmark, began a USD 1.1 billion hostile takeover for troubled Wheeling Pittsburgh Corp parent of Wheeling Pittsburgh Steel. Esmark won control over Wheeling Pittsburgh's board in a November 2006 proxy fight and seized control of the company December 4th 2006 when Esmark Mr James P Bouchard was named chairman and CEO. Wheeling Pitt and Esmark signed a definitive merger agreement March 16th 2007.