Novolipetsk Won't Buy Maneely

Novolipetsk Steel, Russia's biggest steelmaker by market value, said Sunday that it has terminated an agreement to buy John Maneely Co. of the United States from The Carlyle Group.

"I can confirm the contract has been stopped," said Anton Bazulev, the firm's head of investor and government relations.

Carlyle, the world's second-largest private-equity firm, said Saturday that it will continue to pursue "all legal remedies" against Novolipetsk and that a court case filed on Oct. 15 in New York is still pending. Carlyle's DBO Holdings filed the suit to enforce its rights under an Aug. 12 agreement for a merger between Novolipetsk and John Maneely.

The news comes after Novolipetsk Steel halted deliveries on Friday to GAZ, billionaire Oleg Deripaska's carmaker, because of overdue payments.

Novolipetsk is continuing talks with other consumers whose payments are overdue, Bazulev said Friday.

Deripaska's companies have faced pressure amid the credit-market turmoil. He ceded his stakes in Hochtief and Magna International last month after the shares used as collaterals to finance the acquisitions lost their value. United Company RusAl reduced production and work force at its Ukrainian alumina and aluminum complex on Nov. 3.

n GAZ said Friday that sales climbed 20 percent in the first half.

Revenue rose to 81 billion rubles ($3 billion), GAZ said, without giving a year-earlier figure.