Feb 27 2003
AK Steel has been notified by the Federal Trade Commission that antitrust agencies have closed the waiting period early, with regards to their proposed acquisition of National Steel. This moves them a step closer to acquiring the bankrupt steel giant.
AK Steel and US Steel are both aggressively trying to acquire the assets of National Steel. Of the two, AK Steel has been recognized by the courts as the lead bidder, with their bid of US$1.1 billion, which surpassed US Steel’s bid of US$950,000.
Although AK Steel has the status of lead bidder, they have yet to execute and ratify a labour negotiation with the United Steelworkers of America (USWA). US Steel are also actively working on a agreement with USWA.
These negotiations could make or break the deal for either bidder, with negotiations needing to be in place by March 17. In this respect US Steel is thought to have the inside running as AK Steel has had a 3 year lockout, after its purchase of Armco Inc.
The auction of National Steel assets is set to conclude on April 7, when the winning bid will be approved by Judge John Squires.
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