Mittal to finalize Kryvorizhstal payment within 60 days
Sources report that Mittal Steel, who recently won the tender held for the privatization of Kryvorizhstal, Ukraine's largest steel mill, has signed an agreement with the Ukraine's State Property Fund (SPF) in an effort to extend the deadline for the payment of $4.8 billion, which was the winning price in the tender held for the privatization of a 93 stake in the Ukrainian producer. In line with the agreement signed between Mittal and SPF on Friday (Oct 28), the payment will be made within 60 days. Earlier, the payment was expected to be made within 30 days. The agreement will provide Mittal Steel with the necessary time to secure a $2.2 billion loan from Citibank to finance the purchase. The remaining part of the payment will be financed by Mittal's own funds. According to the new agreement, half of the payment will be made by November 30, 2005, while the other half will be paid by December 30, 2005.