The arbitrator's decision holds significance as United Steelworkers (USW), the umbrella union of the industry workers in the US, has been consistently opposing the Essar Steel offer and has instead backed a rival bid from Russia's Severstal.
Although the arbitrator determined that the target company "did not give the USW sufficient advance written notice of the company's April 30 memorandum of agreement with Essar Steel Holdings Ltd, it denied all remedies sought by the USW, other than setting aside this MOA", Esmark said.
Following the arbitrator's yesterday decision and in keeping with its good relations with USW, Esmark said in a regulatory filing here that it has agreed to extend the USW right to bid period for another three days to June 26.
"We value our relationship with the USW and appreciate the guidance the arbitrator has provided to both parties. The board of directors looks forward to continuing this process and making a deliberate and informed decision consistent with our fiduciary duties on all offers," Esmark CEO James Bouchard said.
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He, however, added that the "Arbitrator stated that any USW proposal would have to compete with the $19 price tag before the board".
In view of the arbitrator's decision, USW would now have to come up with a competing offer for Esmark until June 26, failing which Essar could revive its earlier bid, which has already been approved by the Esmark's board.