Bethlehem agrees to acquisition by ISG

Bethlehem agrees to acquisition by ISG

Bethlehem Steel Corp. announced yesterday that it agrees to be acquired by International Steel Group (ISG) . ISG, which is backed by the buyout fund W.L. Ross & Co., placed its bid for this acquisiton at $ 1.5 billion earlier last month. The outcome of this acquisition is said to create the biggest steel company in the US. The acquisition calls for a reduction in the workforce by half, but same has been seen as a better option than an entire close down. However, the officials prefer to wait for some time prior to making any definite declaration in this respect. The company currently has 12'000 employees. The deal still needs to be approved by Bethlehem's board, the Bankruptcy Court as well as the Bethlehem creditors. The company board will reveal the details of the deal on Saturday this week. According to latest reports, the conditions of the deal slightly defer from the original offer placed on January 6, 2003. The new deal includes more assets and liabilities to be taken over by ISG, however the details remain undisclosed for the time being. Bethlehem Steel filed for Chapter 11 Bankruptcy protection in October 2001.