Poland meets deadline for reform plan submission to the EU
Both bidders LNM Holdings and
US Steel have good track records in takeovers of almost bankrupt steel mills and turning them into profitable operations.
However, the takeover and restructuring of overstuffed PHS with low-quality products is a more serious challenge for the bidding companies which will require considerable investment to increase efficiency. Furthermore, after the latest news of
US Steel acquiring National Steel, industry experts doubt whether this company can afford to buy both.
PHS has started inviting bids and sending information memoranda, that is a passport to participate in the tender, expecting to receive over ten international steelmakers. The deadline to submit bids is Feburary 10, 2003. Even though plenty of offers are expected, the most seriously considered bidders are LNM Holdings and
US Steel that are willing to dominate in Central
Europe and further grow in the global market.
Participation of Arcelor and ThyssenKrupp are also excepted, as well as Corus, however it appears that these companies would rather study the books of PHS than launching serious offers.
The Polish mill intends to complete the sale by the end of the year.
Furthermore,
Poland is reported having been able to meet February 10 deadline to submit the restructuring plans to the EU Commission. The Commission is intending to see whether
Poland can meet the promised levels of capacity reductions through closures.
The submission of the plans is
Poland's last chance to receive approval of Zloty 3.4 billion (approx $888 million)of state aid prior to joining the EU in 2004.