National Steel selects US Steel as best bidder
US Steel appears to be closer to the aquisiton now, as National Steel Board of Directors decided to select the company as the highest and best successful bidder yesterday, during an auction held in Chicago. Following the decision of the Board, US Steel's bid will be submitted to the US Bankruptcy Court for approval, on Monday, April 21. US Steel bid of $1.05 billion covers National's substantially all steelmaking and finishing assets and the assets of National Steel Pellet Co. The bid includes $850 million cash payment and the assumption of $200 million of National's lease and contractual obligations. It also possesses the advantage of securing an agreement with the labour union United Steelworkers of America (USWA). National Steel exercised its right to terminate the previous asset pruchase agreement with AK Steel as AK failed to secure agreement with the labour union USWA. AK Steel, which failed to reach an agreement with the labour union within the court imposed deadline last week, maintained its bid of $1.125 billion for National Steel including debt. USWA threatened to go on a strike if National steel accepted AK Steel takeover plan. Hence, yesterday's decision by the National Steel Board received appreciation from the USWA.