OREANDA-NEWS. December 3, 2007. Severstal will acquire 100% of Baracom from Severstal’s CEO, Alexey Mordashov, which owns 18.5% and controls 79.9% of Severcorr, for $84.4 million.

Severstal is investing in Severcorr’s assets at investment cost, as opposed to fair value, which would have resulted in a substantially higher acquisition price.  When the deal closes, Severstal will hold 71.1 % of the shares in SeverCorr.

Chris Clark,Chairman of Severstal’s Board of the Directors, said: “At this favorable price, we believe that the consolidation of our stake in SeverCorr is in the best interests of Severstal’s shareholders and adds considerable shareholder value”.