CHICAGO (AFX) - Privately held steel supplier Esmark Inc. said Wednesday it is 'surprised and troubled' by Wheeling-Pittsburgh Corp.'s rejection of a takeover offer, and that it will continue to woo its shareholders.
Wheeling-Pittsburgh on Tuesday said instead of merging with Esmark, it intends to pursue a strategic alliance with a Brazilian steel producer.
Esmark Chief Executive James P. Bouchard said, 'We are pleased that the Wheeling-Pitt board has finally responded to Esmark, but are surprised and troubled to see that they have rejected outright a well-capitalized plan that we believe is in the best interests of Wheeling-Pitt and its shareholders.'
Esmark said it plans to soon propose a slate of directors that would allow Wheeling-Pittsburgh shareholders to vote on the proposed merger.
Under the proposal, Wheeling-Pittsburgh would issue 26.5 million new common shares to Esmark shareholders and would offer to buy back up to 50 percent of its outstanding stock, or 7.3 million shares, at $20 per share.
Wheeling-Pittsburgh shares closed up 35 cents at $19.86 on the Nasdaq.
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