AK Steel offer upsets National steelworkers
The National Steel workers threaten to go on a strike in case the bankruptcy court decides to approve any request to void labour contracts. The United Steelworkers of America (USWA)is preparing to take necessary action against the AK Steel announcement of its intention to continue with its bid without an agreement with the union.
US Steel last week reached a tentative agreement with the workers union while, rival bidder AK Steel failed to do so within the given deadline of last Wednesday. However, AK Steel's offer of $925 million plus $200 million assumption in debt was affirmed. Meanwhile
US Steel revised its bid to $775 million in cash plus $200 million for assumption in liabilities, and included the National Steel Pellet Corp. in its offer.
US Steel already operates Minntac Mine in Mountain Iron, Minnesota.
If awarded under the bid,
US Steel will acquire Great Lakes Steel, in Ecorse and River Rouge, Michigan; Granite City Division in Granite City III; Midwest finishing facility in Portage, Ind.; ProCoil Corp. in Canton, Michigan; National Steel Pellet Co's
iron ore pellet operations and joint venture interests including National Steel's share of Double G.
National Steel has been operating under bankruptcy protection since March 6, 2002. As per the procedure established by the bankruptcy court, a bidding procedure including an auction will be held on April 16, 2003 and a hearing to approve the winning party on April 21, 2003.