Severstal drops bid for Crew Gold shares
Severstal (CHMF.MM) said it is no longer interested in making a tender offer for Crew Gold (TSE:CRU), which had wanted to buy a controlling stake in the company.
Endeavour Bank (TSE:EDV) started acquiring shares in Crew Gold, and now owns about 43 percent of the shares, and has 3 of its people on the board of Crew Gold.
Severstal said the price of Crew Gold shares from the buying of shares by Endeavour has made the deal no longer attractive because of their higher price, and consequently is dropping their pursuit of managing control.
Severstal currently owns 27 percent of Crew Gold shares.
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