BALTIMORE (AP) — ArcelorMittal has filed a lawsuit against Illinois-based Esmark related to last year’s aborted sale of the Sparrows Point steel mill near Baltimore.

Luxembourg-based ArcelorMittal claims that Chicago Heights-based Esmark breached its contract to purchase the plant for $1.35 billion.

The proposed sale fell through in December because of financing problems.

The lawsuit filed in New York’s Supreme Court seeks $540 million in damages.

Esmark says the lawsuit is frivolous. The company argues that ArcelorMittal failed to meet the conditions required to close the transaction and didn’t resolve disputes with the United Steelworkers over the sale.

Posted 5/9/2008