A rival bid comes in for Bethlehem Steel acquisition

A rival bid comes in for Bethlehem Steel acquisition

International Steel Group's offer of $1.5billion is challenged by a new bid as reported by the Bethlehem Steel authorities. North Point Industries LLC of Edgemere, formed solely for the purpose of buying Bethlehem Steel, disclosed its intention to submit a bid that exceeds ISG offer by $300 million. ISG and Bethlehem agreed in March for the sale of Bethlehem assets including Sparrows Point plant in Baltimore county against $ 1 million in cash and $500 million in assumed liabilities. However, the mentioned North Point has not yet placed its bid firmly. According to reports, an extension until May 14 has been requested from the bankruptcy court. Yesterday was the deadline for competing bids in an auction of Bethlehem steel assets scheduled for tomorrow. The procedures have previously been outlined by the Bankruptcy Court. An auction for the sale will be conducted on April 16, 2003 as ordered by the Bankruptcy Court. April 14 was the deadline to submit competing bids to participate in the auction. Following the auction, a hearing to approve ISG's bid or a higher or better bid, if any, will be held on April 22, 2003. ISG will go through without any auction in case no rival bids are received. As determined by the Bankruptcy Court, a rival offer must be at least $15 million higher than ISG offer, must involve a $27 million break-up fee payable to ISG and must contain a cash payment of up to $5 million to ISG for its out-of-pocket expenses, to be considered qualified. Bethlehem Steel has been operating under bankruptcy protection since October 2001.