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U. S. Steel Canada Declines New Offer From Essar Global
08/10/2016 - U. S. Steel Canada has rejected a new buyout offer from Essar Global, saying that its new bid is substantially similar to one that was proposed -- and rejected -- earlier this year, according to reports.
In a statement, U. S. Steel Canada said it is not considering the offer, adding that Essar’s previous bid had been rejected partly because it failed to show that it had the financial wherewithal to meet the obligations associated with it.
Moreover, it said other Essar affiliates are struggling financially at the moment.
“U. S. Steel Canada will avoid any distraction that could be detrimental to the Company, its employees and pensioners, at a time when the restructuring process is progressing, and negotiations with the current bidders continue.”
Through an entity called Ontario Steel Investments Ltd., Essar Global on Tuesday said it had submitted a formal, binding offer for the former Stelco. It didn’t disclose what it was willing to pay for the company, but said the offer included the assumption of CA$954 million in pension liabilities.
As part of the bid, the Ontario Steel said it has been in talks with the United Steelworkers union on a new labor agreement. Those talks are ongoing, and the union is displeased that U. S. Steel Canada rejected the offer so quickly.
"It's ridiculous, especially when U. S. Steel Canada (took) just a day to think about it,” said Gary Howe, president of United Steelworkers Local 1005 in Hamilton, Ontario, according to the Reuters news service.
“This is going to cause people in Hamilton to be extremely upset and it's irresponsible," he said.
Moreover, it said other Essar affiliates are struggling financially at the moment.
“U. S. Steel Canada will avoid any distraction that could be detrimental to the Company, its employees and pensioners, at a time when the restructuring process is progressing, and negotiations with the current bidders continue.”
Through an entity called Ontario Steel Investments Ltd., Essar Global on Tuesday said it had submitted a formal, binding offer for the former Stelco. It didn’t disclose what it was willing to pay for the company, but said the offer included the assumption of CA$954 million in pension liabilities.
As part of the bid, the Ontario Steel said it has been in talks with the United Steelworkers union on a new labor agreement. Those talks are ongoing, and the union is displeased that U. S. Steel Canada rejected the offer so quickly.
"It's ridiculous, especially when U. S. Steel Canada (took) just a day to think about it,” said Gary Howe, president of United Steelworkers Local 1005 in Hamilton, Ontario, according to the Reuters news service.
“This is going to cause people in Hamilton to be extremely upset and it's irresponsible," he said.
