WHEELING, W.Va. (AP) -- Russian steelmaker Severstal says it's disappointed in a tactic being used by West Virginia-based Esmark to stave off a $650 million takeover bid.
Esmark's board has decided to adopt a stockholder's rights agreement that allows the company to issue more stock if a company purchases more than 15 percent of Esmark's stock.
Severstal said Tuesday that the board's decision to adopt the agreement tips the scales to competitor Essar Steel Holdings, who is also trying to gain control of Esmark.
Essar has offered to pay $750 million for Esmark.
Severstal's bid for Esmark is supported by the United Steel Workers, but Esmark wants the company to go India-based Essar.
Esmark has operations in 20 states, including Ohio, Pennsylvania and Virginia.