Bloomberg reported that OAO Magnitogorsk Iron & Steel, the steelmaker whose proposed takeover of Australia Flinders Mines Ltd has been blocked by a Russian court won’t take any further action on the bid until the case is heard on July 2.

Mr Kirill Golubkov a spokesman said “Magnitogorsk’s decision on its future actions regarding the agreement will be taken only when the results of the court hearings are known.”

The offer period ends June 30 meaning it will expire before Magnitogorsk makes any decision on extending the bid.

The Russian steelmaker known as MMK saw its AUD 554 million takeover offers blocked after minority investor Elena Egorova won a court decision in March preventing the deal claiming it discriminated against her interests as a shareholder.

The case will be heard at the Chelyabinsk court which this month dismissed an appeal from MMK to lift the injunction on the deal. MMK agreed to acquire the Adelaide-based iron-ore producer in November.

Source - Bloomberg

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