After a month of speculation, bankrupt Weirton Steel, America’s fifth largest steel maker, have admitted that they are involved in merger discussions with International Steel Group (ISG).
Weirton Steel submitted a plan for reorganisation to emerge from Chapter 11 bankruptcy on October 7 and would prefer to remain a stand alone business if at all possible. Under the plan, they would cut costs and the about one third of their labour force. They would also look to implement pay cuts for remaining employees and cut parts of their pension plans for retirees.
ISG would no doubt be keen to acquire Weirton Steel, as they have been swallowing up all before them and eliminating their competition. The acquisition of one of America’s largest tin mills would also be attractive to them.
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