Severstal Increases Stake in Crew Gold (TSE:CRU)

Severstal announced today it has increased its stake in Crew Gold (TSE:CRU) to over 36 percent, after buying about 10 percent of the outstanding shares in the company.

Severstal, which is a Russian-based steelmaker, responded in this way because they are battling Endeavour Financial Corp (TSE:EDV) for control of the company. Endeavour owns close to 43 percent of Crew, and has been buying more recently. Endeavor also holds tree board positions in the company.

Total shares bought by Severstal this time around were about 206 million at C$0.2887. That's a premium of close to 18 percent over Tuesday's close.

Crew was at $0.2650 a share in Toronto at 1:00 PM EDT.