Jun 4 2007
Stelco Inc. confirmed that it is reviewing strategic options for the company in light of the ongoing consolidation in the steel industry. The company has appointed a special committee of directors and CIBC World Markets and UBS to assist it in this review. The company intends to evaluate a broad range of possible alternatives including mergers, strategic partnerships, acquisitions or a sale of all or part of the company.
Discussions regarding these alternatives with third parties are at a very preliminary stage and there have been no discussions on the material terms of any transaction. Accordingly, there is no assurance that a transaction will result from these discussions or as to the timing, structure or terms of any transaction, and no further comment will be forthcoming unless the situation warrants.
"Since emerging from CCAA, Stelco has been committed to building a stronger, more cost-efficient steel company, which would eventually become part of the global consolidation in the industry. As part of the restructuring efforts, Stelco has focused on completing the upgrade of the Lake Erie Hot Mill and addressing productivity and cost issues at the Hamilton works. We believe it is appropriate to begin the next phase of our business plan and explore all potential alternatives for positioning Stelco to be an integral part of a larger, globally competitive company," stated Rodney Mott, President and Chief Executive Officer.