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. Last Updated: 07/27/2016

Celtic Shareholders Urged to Accept Bid

Itar-TassFrench actor Gerard Depardieu at the Ararat Park Hyatt in Moscow on Saturday presenting a collection of Anjou wine from his own vineyard.
LONDON -- Severstal, the country's largest steelmaker, said Friday that the management of gold miner Celtic Resources Holdings "has a history of destroying shareholder value" and urged investors to accept its ?161 million ($330 million) hostile offer.

"Celtic's financial performance has been erratic and is punctuated by poor profitability and a volatile production record," Severstal said in a statement sent to Celtic shareholders.

Severstal, controlled by billionaire Alexei Mordashov, wants to diversify by acquiring the London-based producer of gold and molybdenum, a steelmaking ingredient. Severstal said Oct. 8 that it would run Celtic as though it were a subsidiary even if the bid to buy the whole company failed. Celtic has urged shareholders to reject the offer of ?2.70 per share because it undervalues the company. Severstal needs 80 percent of the shares for its bid to become compulsory.