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 January
3, 2005 edition
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Jan. 3, 2005. 12:37 AM |
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Stelco has week to weed out bids |
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By Tara Perkins |
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The first phase of Stelco's money-raising process finished Friday,
launching the steelmaker and its bidders into the final stage that will
determine who owns the steelmaker. More than five bids have been received, chief restructuring officer Hap
Stephen said. Stelco has one week to weed out those companies it doesn't want to proceed
to phase 2. "We haven't weeded anyone out yet as we will be reviewing the proposals
over the next few days," he said Friday. Bidders who have come forward publicly include Russian steel giant
Severstal, U.S. Steel, Algoma Steel and a joint venture comprised of Sherritt
International Corp. and the Ontario Teachers' Pension Plan. Those companies must top a $900 million deal arranged with Deutsche Bank
to set a floor for all other bids. Other bidders chose not to disclose their
interest publicly. By this Friday, Stelco will determine which companies advance to the next
stage, something that entitles them to highly confidential business
information. "The company will identify proposals which are in the best interest
of the company and other stakeholders to pursue with the input of the (court)
monitor and selected potential investors will be invited to participate in
phase II of the process," the company's court documents say. Criteria for selecting possible bidders include the dollar amount they
offer, the risk that the offer could fall through, the structure of the
proposal and how the offer affects Stelco's stakeholders, including workers
and creditors. This month, all selected bidders will be allowed to complete detailed due
diligence, which includes sorting through reams of information -- financial, environmental,
legal and strategic -- that Stelco is making available in an electronic
database. Bidders who haven't already met with management or toured Stelco's plants
can now do so. By the end of this month, those who are still interested must submit binding
offers. Stelco wants to choose a winning bid and have it approved by stakeholders
and the court no later than Feb. 28, nearly 13 months after filing for
bankruptcy protection. tperkins@thespec.com 905-526-4620 |