OAO Severstal
LSE : SVST

OAO Severstal
Bluecone Limited

April 06, 2010 17:21 ET

Severstal Responds to Certain Misleading Comments Made by Endeavour Financial

MOSCOW, RUSSIA--(Marketwire - April 6, 2010) - OAO Severstal ("Severstal") (LSE:SVST) is issuing the following update subsequent to an announcement by Endeavour Financial Corporation ("Endeavour") on April 6, 2010 that Endeavour is seeking an investigation and orders by the British Columbia Securities Commission against Severstal and certain other unaffiliated parties of Severstal in respect of their shareholdings in Crew Gold Corporation. 

The press release made allegations against Severstal of market manipulation and of acting in concert with these unaffiliated parties in contravention of Canadian securities legislation. Severstal has reviewed a copy of the complaint made by Endeavour to the BCSC and has determined that the assertions and allegations made therein are completely without merit.

Severstal is not acting jointly or in concert with any other person in connection with Crew Gold and, therefore, Endeavour's references to the "Severstal Partners" in the press release are inaccurate and misleading. Severstal's contact with other Crew shareholders was limited to determining their support for a requisition of a special meeting and no agreement, commitment or understanding of any kind exists between Severstal and any of these shareholders. 

Severstal is concerned that Endeavour, by making this complaint, is attempting to avoid having Crew Gold's shareholders vote on the composition of the board of directors. Severstal notes that the current Endeavour representatives, comprising one-half of the board of Crew Gold, were not elected by shareholders. 

As a greater than 5% shareholder, Severstal has the right to requisition a special meeting of shareholders and would welcome the determination of the composition of Crew Gold's board by a vote of all shareholders.

Severstal will keep relevant constituencies updated as appropriate. 

Contact Information

  • Morgan Stanley
    Peter Bacchus
    +44 (0) 77899 43482
    or
    Hudson Sandler (media contact)
    Jessica Rouleau/Andrew Hayes
    +44 20 7796 4133
    or
    OAO Severstal (media contact)
    Sergey Loktionov
    +7 495 926 7766