Tata Negotiating Pay-Out to End pension Fund Guarantee Held on Steel Plant
01/13/2017 - Trustees of Tata Steel’s U.K. pension fund are negotiating a potential pay-out from the steelmaker in exchange for releasing a guarantee held on its Dutch steel works, according to reports.
According the (London) Financial Times, Tata is offering the British Steel Pension Scheme ”hundreds of millions” pounds to end the guarantee, which, in certain instances, gives the fund a right over the assets there.
Tata wants to sever itself from the pension fund, worth about 15 billion pounds, to clear the way for a potential combination of its U.K. strip business with the steel operations of Germany’s thyssenkrupp.
The Financial Times has the story here.
Tata wants to sever itself from the pension fund, worth about 15 billion pounds, to clear the way for a potential combination of its U.K. strip business with the steel operations of Germany’s thyssenkrupp.
The Financial Times has the story here.
