LNM fears for National Steel Corp’s survival
The takeover riddle regarding National Steel Corp (NSC) of
Philippines is going on for the last couple of months. Although the Indian steel producer, a unit of Ispat Industries Ltd, Global Infrastructure Holdings Ltd (GIHL) is selected as winning bidder, the submitted offer has to be approved by necessary authorities.
One of the world's largest steel producer Anglo-Dutch LNM Holdings NV was the other bidder and together with several banks insists on that it may be a pretty bad experience in case NSC is given to GIHL. LNM, underscoring the fact they are much more experienced in turning acquired steel companies into profitable operations, stated that GIHL has never operated outside
India. Accordingly, this will inevitably determine NSC's future, probably in an unfortunate way.
Moreover, LNM's offer was relatively better higher than GIHL's due to its higher allocated investment expenses for 2004 and amount of advance cash payment. LNM offered
Philippines Pesos 2.5 billion and $70 million, respectively, while same were Pesos 1 billion and $25 million by GIHL.