AK Steel bid receives court approval
Following last week's asset purchase agreement signed between AK Steel and National Steel, allowing the right to receive $15 million breakup fee to AK Steel in case of a sale to another bidder, National Steel declared today that AK Steel Holding Corp.'s bid for a takeover has been approved and named a leader bidder, by the Bankruptcy Court.
This situation increases the chances of AK Steel to succeed in the acquisition. However, National Steel says a new contract with the workers' union needs to be secured in case of deal with AK Steel.
Meanwhile, National Steel said US Justice Department has requested additional information regarding
US Steel offer, to which the company intends to cooperate fully.
National Steel, based in Mishawaka, Indiana filed for Chapter 11 bankruptcy protection in March 2002.