Speculations of deceit in Polish PHS privatisation
Regarding the privatisation of the Polish mills Polski Huty Stali (PHS) one of the two bidders
US Steel yesterday claimed that European competitor Arcelor received confidential information during the due diligence and hence decided not to place a bid.
The
US Steel argues that, having obtained detailed information of the Polish market, potential customers and steel costs and prices, Arcelor is planning to enter the Polish market taking the advantage of closeness of its plants to the country.
The bidding took place in April 22, 2003 with
US Steel and LNM Holdings submitting their bids after completion of their due diligence. Polish government request the investor to take Zloty 1.6 billion (approx. €375 million) in company debt that is mostly to state owned companies and would be swapped for equity. In addition, the investor would be required to put in $150 million for technical modernisation.