The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article published in the January 5, 2005 edition

Jan. 5, 2005. 12:51 AM

Stelco bidding turns into seven-way race

Six companies have submitted initial proposals to buy or refinance Stelco, and all are now being advanced into the next phase of the steelmaker's capital-raising process.

That clears the way for a seven-way race, as each of the six companies attempts to top a $900 million offer from Deutsche Bank for a near one-half stake in the company. The number was revealed late yesterday in an update on Stelco's capital-raising process.

"We're very pleased with the level of interest and commitment shown by the parties that are advancing to the next phase of our capital raising process," said Stelco's chief restructuring officer Hap Stephen. "The presence of seven strong bidders makes for a vigorous process and reflects the positive manner in which Stelco and its prospects are viewed."

Stelco also said it will not be disclosing the identities of the bidders, or details of their offers, as the process continues.

Algoma Steel, Severstal, Sherritt International and U.S. Steel have already publicly announced they are looking at Stelco. There is speculation International Steel Group, which recently merged with Europe's Mittal Steel Co., is also considering a bid.

The six companies now will be given greater access to business, financial and legal information. Their bids are due Jan. 31.

The Hamilton Spectator with files from Canadian Press