THE dispute between steelmaker Corus and Russian businessman Alisher Usmanov continued last night.

Corus chairman Jim Leng said Mr Usmanov was sending contradictory messages that were distracting the company's board of directors.

The row between the two camps concerns the Russian's company, Gallagher Holdings, which is seeking a seat on the board.

Last week, Gallagher proposed Adrianus van der Velden as a non-executive director of Corus. The iron ore producer said he would be independent of Gallagher.

It said that it was not seeking a seat on the board as a means of securing a supply deal with Corus.

But Corus chief executive Philippe Varin said talks between the two parties were taking place about contracts, and samples from Gallagher's mines had been passed to the Anglo-Dutch steel company.

In a letter to shareholders, Mr Leng said: "Given these inconsistencies about Mr Usmanov's position, it is difficult for the board to understand his long-term intentions and ambitions."