National Steel receives a rival bid for takeover
AK Steel announces that it has placed an offer of $1.025 billion for National Steel Corporation, which comes in as a higher bid than the earlier $750 million one from
US Steel. $200 million of the offer consists of the assumption of certain liabilities. The remaining $825 million would be payable to National in cash, with $450 million of that amount for net working capital.
On the other hand US Steels offer involves $650 million in cash, $100 million in stock and the assumption of $200 million in liabilities.
AK bid does not include the assumption of pension and other benefits for retirees, as the company is very rigid in this respect. The United Steelworkers of America representing most of the National Steel employees is currently working on the offer, yet the chances are emphasized not to very high to reach an agreement with AK Steel, given the number of unresolved issues resulting from the company's three-year lock out of union workers at one of its plants in Ohio.
On the other hand, National Steel officials believe that company operations could diversify AK Steel's product mix by contributing tin mill and
construction market products.
National Steel, based in Mishawaka Ind. has been operating under Chapter 11 bankruptcy protection since March 2002.