International Steel Group makes bid for Bethlehem

International Steel Group makes bid for Bethlehem

Monday January 6, 2003 was the last day of International Steel Group's (ISG) 60-day exclusive exploration period for Bethlehem Steel which filed for Chapter 11 bankruptcy court protection in October 2001. The ISG offer came in yesterday to buy Bethlehem Steel's mills and related assets at $1.5 billion, higher than the estimated figure of $900million-$1.1 billion. Negotiations are expected to complete within 10 days. Thereafter, Bethlehem Steel board will decide on its acceptance of the offer later this month. A possible deal will also have to be approved by the US Bankruptcy Court. The United Steelworkers of America is backing the proposed acquisition, according to reports. Although the workforce will be reduced by half, union officials state find it still better than a complete shutdown of Bethlehem. Currently, the company has 12'000 employees.