WCI Steel Responds to Legal Challenge
06/19/2008 - WCI Steel issues statement in response to media inquiries concerning the legal challenge filed by Optima International of Miami and minority stockholders representing less than 18% of the company’s shares outstanding.
In response to media inquiries concerning the legal challenge filed by Optima International of Miami and certain minority stockholders representing less than 18% of the shares outstanding, WCI Steel, Inc. issued the following statement:
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"The legal action initiated by Optima International and certain dissident stockholders is without merit. Holders of a majority of WCI Steel's shares approved, on May 16, 2008, an agreement of sale to OAO Severstal.
“We continue to believe that this transaction with Severstal provides the most value to WCI Steel stockholders, customers, suppliers and employees. We intend to vigorously defend against this baseless action and will continue to pursue an expeditious closing of the sale, which will significantly improve the long-term prospects for the Warren facility."
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WCI Steel, an integrated producer of value-added, custom steel products, serves niche markets emphasizing customer and technical service. WCI Steel currently produces 185 grades of flat-rolled custom and commodity steel products at its Warren, Ohio facility. The company focuses on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength, and heavy-gauge galvanized steel and on developing closer, more responsive relationships with customers. Major customers are steel converters, processors, service centers, construction product companies, and pipe and tube manufacturers.
OAO Severstal, an international metals and mining company, focuses on high value added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. Severstal owns mining assets in Russia, thus securing its supplies of raw materials. In 2007, Severstal produced 17.5 million tons of steel. Revenues were $15.2 billion, EBITDA was $3.7 billion, and EPS was $1.92.
