The Stel Salaried
Pensioners Organization wishes to thank The Hamilton Spectator for permission
to post the following article by Reporter Tara Perkins published in the
February 9, 2005 edition
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Feb. 9, 2005. 12:50 AM |
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TD Securities lining up to make
bid for Stelco |
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By Tara Perkins |
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TD Securities is a potential bidder for Stelco. The wholesale banking division of TD Bank Financial Group is one of six companies which have signed a confidentiality agreement and is conducting due diligence on Stelco, say people close to the company. Those bidders have until Feb. 14 to submit an offer to refinance or buy the steelmaker. Offers must top a $900-million deal Stelco negotiated with Deutsche Bank, a major bondholder. Other bidders include Algoma Steel, Severstal, U.S. Steel and a joint venture between Sherritt International Corp. and the Ontario Teachers' Pension Plan. TD Bank Financial has more than $300 billion in assets. Bank and Stelco spokesmen refused to comment. Lawyers for the steelmaker will appear in a Toronto courtroom this morning to ask Justice James Farley to extend the company's bankruptcy protection to April 30. It is currently set to expire Friday. "It would be extremely harmful, and not in the interest of any of Stelco's stakeholders, for the capital process to be interrupted or brought to a halt at this time," chief restructuring officer Hap Stephen said in court documents. Meanwhile, the United Steelworkers have set up an office on University Avenue in Toronto, where they are meeting with bidders to negotiate new contracts for workers at Lake Erie and in Alberta. The union also wants bidders to agree to settle Stelco's pension deficit within the next decade, with a lump sum payment this year. Norambar, Stelfil and Stelwire presidents are also sitting in on talks, but Local 1005 has refused, saying Stelco is abusing bankruptcy laws. tperkins@thespec.com 905-526-4620 |