Aug 4 2006
Wheeling-Pittsburgh Corporation today announced that it has negotiated the material points of an arrangement that, when completed, would combine the North American assets of Companhia Siderurgica Nacional ("CSN"), a leading, fully-integrated global steel producer, with Wheeling-Pittsburgh to create a strong, well-capitalized steel producer with a more flexible cost structure, broader value-added product offering, access to CSN's product and process technology, and significant incremental earnings potential. The Company expects to complete and file definitive documentation upon expiration of the "right to bid" period set forth in the United Steelworkers' ("USW") bargaining agreement unless the USW or its assignee files a competing bid for consideration by Wheeling-Pittsburgh Corporation's Board of Directors prior to the expiration of that period.
James G. Bradley, Chairman and Chief Executive Officer of Wheeling-Pittsburgh stated, "Since emerging from bankruptcy in 2003, our Board of Directors has evaluated a broad range of options for maximizing value for our shareholders. The proposed transaction with CSN is the culmination of an extensive and rigorous process, which included exploratory discussions with a broad range of potential partners. CSN is a world-class, low-cost Brazilian producer of 5.6 million metric tons of steel, and this transaction presents Wheeling-Pittsburgh with a unique opportunity to improve scale and production, generate significant operating efficiencies and broaden our product portfolio. Our Board strongly believes that the proposed transaction with CSN offers our shareholders the most compelling value proposition over the long term and, in particular, will deliver significantly more value than the most recent proposal by Esmark."