It was a deal long rumored to be in the works. Late Friday afternoon press releases were issued both from WCI and OAO Severstal, one of the world's leading metal and mining companies. Here is the text of the WCI release:

WARREN, OHIO, May 16, 2008 - WCI Steel, Inc. (OTC: WCIS) today announced that its Board of Directors has approved and the Company has entered into a definitive agreement to sell the Company to OAO Severstal (LSE:SVST; RTS: CHMF) at a price of about $3.29 per share. The Company currently has more than 42.5 million shares on a fully diluted basis. In connection with the transaction, Severstal will assume over $230 million of debt and other obligations.

"During the past few months, the Board of Directors has carefully evaluated strategic alternatives and has concluded that the sale of WCI Steel to Severstal is in the best interests of the shareholders and will enable the Warren, Ohio, facility to prosper in the future," said Leonard M. Anthony, president and chief executive officer of WCI Steel. "All of us at WCI Steel are committed to working toward a smooth and rapid transition."

The acquisition is subject to customary closing conditions, including approval under the U.S. anti-trust laws by the United States Department of Justice, and is expected to close in the third quarter of 2008. The acquisition has the full support of the United Steel Workers.

Moelis & Company is acting as exclusive financial advisor to WCI Steel, Inc. McDermott Will & Emery LLP acted as legal counsel to the Company, and Kaye Scholer LLP acted as legal counsel to the Special Committee of the Board of Directors.

About WCI Steel, Inc.

WCI Steel's strength is built on "Custom Steel. Custom Service. Creative Solutions." As an integrated producer of value-added, custom steel products serving niche markets, WCI Steel emphasizes customer and technical service. WCI Steel currently produces 185 grades of flat-rolled custom and commodity steel products at its Warren, Ohio, facility. WCI Steel focuses on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength, and heavy-gauge galvanized steel and on developing closer, more responsive relationships with customers. Major customers are steel converters, processors, service centers, construction product companies, and pipe and tube manufacturers.

About Severstal

OAO Severstal is an international metals and mining company with a listing on the Russian Trading System and the London Stock Exchange. Incorporated in 1993, the company focuses on high-value-added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. Severstal owns mining assets in Russia, thus securing its supplies of raw materials. In 2007, Severstal produced 17.5 million tons of steel. Revenues were $15.2 billion, and EBITDA was $3.7 billion. EPS was $1.92.