ISG makes bid for Bethlehem Steel

Bethlehem Steel Corporation has received a billion dollar offer from International Steel Group (ISG) to acquire all of Bethlehem’s steelmaking assets.

Bethlehem Steel Corporation has received a billion dollar offer from International Steel Group (ISG) to acquire all of Bethlehem’s steelmaking assets which, when combined with ISG’s assets, would create the largest steel company in North America.

Bethlehem will review the proposal with its and ISG’s advisers to determine if it is in the best interests of Bethlehem’s creditors and other constituents. The review of the proposal could take several weeks.

‘Receipt of a proposal from ISG is certainly a positive development, and I am hopeful that we can reach an agreement in the near future,’ said Robert S. Miller, Chairman and CEO of Bethlehem Steel. ‘A combination of Bethlehem and ISG would create a formidable new competitive player in the steel industry, with 16 million tons of annual shipment capacity.’

Bethlehem has been making progress on a standalone plan of reorganisation, and will continue to pursue that alternative until a combination with ISG has been approved by Bethlehem’s board of directors, its creditors committee and the bankruptcy court.

If the merger is realised, the new company would have fully integrated steelmaking operations in Cleveland, OH, Burns Harbor, IN, East Chicago, IN, and Sparrows Point, MD as well as electric furnaces in Coatesville and Steelton, PA. Finishing facilities will be located in Ohio, New York, Pennsylvania and Indiana.

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