MOSCOW, June 6 - RAPSI. The Eighteenth Commercial Court of Appeals refused to allow Magnitogorsk Iron and Steel Works (MMK) to cancel interim measures imposed under a lawsuit by a minority shareholder disputing the transaction with Australia's Flinders Mines Limited, MMK press-service told the Prime business news agency on Wednesday.

MMK shareholder Elena Yegorova secured a pre-award relief in court, which banned the company from implementing the March 30 MMK board resolution to proceed with the purchase. Yegorova believes that the transaction infringes her rights as a minority shareholder and may entail certain financial and operational risks which could affect the return on her investments.

Yegorova's lawsuit will be considered at a trial court on July 2 behind closed doors. ММК and Flinders have challenged the injunction.

In April, the Chelyabinsk Regional Commercial Court denied MMK's request to lift the interim relief. It was later reported that the acquisition had been rescheduled by mutual agreement for June 30. The companies are hopeful that by this time the claims will be settled and the injunction canceled. According to the transaction implementation agreement, June 30 is the termination date of the contract signed by the two companies.

Market analysts doubt that the transaction will go ahead, as the litigation is likely to take several months.

In late November 2011, MMK offered to purchase 100 percent of Flinders Mines' shares for $537 million, or for 0.3 Australian dollars per share (approximately 554 million Australian dollars in total). The transaction has already been approved by all regulating authorities.