Legal fight develops over sale of WCI Steel

WARREN — A legal fight has developed over the sale of WCI Steel.

Minority shareholders in the Warren steelmaker have filed a lawsuit to try to stop the sale of the company to OAO Severstal, a Russian-based company.

WCI issued a statement Wednesday that says the lawsuit is without merit.

“We intend to vigorously defend against this baseless action,” WCI said.

It noted the lawsuit was filed by shareholders who represent less than 18 percent of the company’s outstanding shares. A majority of shareholders approved the sale last month.

Bloomberg news service said the suit, which was filed in a court in Delaware, contends that the WCI board of directors should have accepted a $172 million offer from Optima International of Miami Inc. but were swayed by a steelworkers union to favor the $140 million Severstal deal.

For more information, see Thursday’s Vindicator or www.vindy.com.