SPF To Sets Starting Price For 0.17% Stake In KSTL At Market Price
23 March 2008
The State Property Fund (SPF) announced that it would set the starting price for its auction of a 0.17% stake in Mittal Steel Kryviy Rih (KSTL: HOLD) at its current market price – roughly USD 1.38 (UAH 6.95) per share, meaning the price for the entire stake will start at about USD 8.9 mln. The auction is scheduled for March 27. Eugene Cherviachenko: We believe that the initial price charged by the SPFU is too high to spark the interest of the market. The price is higher than what Mittal Steel paid in November 2005 for the mill (USD 1.33 per share) and way above our target price of USD 1.22 per share.
