LNM Disappointed at Cancellation of Tender for Huta Czestochowa

The LNM Group, the world’s second largest and most global steel producer, today expresses its disappointment at the Polish Government’s announcement to cancel the tender process for the privatisation of Huta Czestochowa.

LNM Holdings N.V. was selected to start exclusive negotiations concerning the sale of the assets of Huta Czestochowa on 28 February of this year. Prior to the expiration of the exclusivity period on 31 March 2004 it successfully initialled agreed terms for the sale, as well as the agreement with majority creditors, and signed the social package with the trade unions.

LNM is concerned that any further delays with the Huta Czestochowa privatisation will affect negatively the business of Huta Czestochowa and may lead ultimately to its bankruptcy.

We are presently awaiting further information from the Government on the tender and its procedures before deciding on the next steps.

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