Re: [Marxism] Rouge Steel: The Russian Bid

[Waistline2@xxxxxxx]

December 20, 2003
BY JEFF BENNETT
FREE PRESS BUSINESS WRITER

A bidding war over bankrupt steelmaker Rouge Industries Inc., expected to be
concluded Friday, will now stretch to Monday.

Jerry Sullivan, president of United Auto Workers Local 600, which represents
1,900 of the Dearborn plant's 2,600 workers, said Russian steelmaker OAO
Severstal and U.S. Steel Corp. are locked in a fierce fight.

Sullivan said Friday night that he received reports from attorneys involved
in the bidding in New York that the purchase price is bouncing between $215
million and $220 million.
Officials for U.S. Steel, Severstal and Rouge could not be reached for
comment.
Severstal has already offered to purchase Rouge for $215 million.

Rouge spokesman William Hornberger told the Associated Press earlier Friday
that the proceedings were delayed while "remaining issues" were sorted out. He
did not elaborate.
If a winner emerges during the weekend, U.S. Bankruptcy Court Judge Mary
Walrath is expected to finalize the purchase during a court hearing in 
Wilmington,
Del., on Monday.
Sullivan said the union was backing Severstal and had reached a tentative
agreement with the company earlier in the week.

As a condition of the sale, the prospective purchaser must have a collective
bargaining agreement with the union.

Full: http://www.freep.com/money/business/rouge20_20031220.htm

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