AK Steel increases offer for National Steel takeover
On Thursday January 30, 2003, National Steel and AK Steel signed a deal over a total value of $1'125 million bid covering $200 million assumed liabilities and the remaining in cash. This bid also covers National Steel Pellet Company which
US Steel offer does not.
Bankruptcy court will hold a hearing to discuss the new offer on February 6, 2003.
US Steel, that emphasizes its ongoing interest in acquiring National Steel, still has the option to revise its bid to a higher number to beat AK Steel offer. The company is focusing on talks with union, which favours
US Steel over AK Steel due to unresolved previous problems with the latter.
The sale of National Steel is subject to creditor and court approvals as well as a new labour agreement with the United Steelworkers of America (USWA).
At present,
US Steel's offer remains as $725 million plus $200 million in National Steel debt, and with the latest increase AK Steel offer is $1'125 million including the $200 million debt.
US Steel offer includes $100 million in stock whereas AK Steel offer is cash.
AK Steel sees the takeover as an opportunity to expand its product line by acquiring National Steel's tin mill and
construction product line.