Non Resident Indian [NRI] Lakshmi Mittal fight for 'sick' steel in Romania.
Ispat NV,The Netherlands.[ticker symbol:NYSE- IST]
(Source: Business Standard.-For Private use only.)
Promoters of Ispat group and Ispat International battle for $45-million sick steel plant in Romania.
Sourav Majumdar in New Delhi
The Mittal brothers - L N Mittal of Ispat International and Pramod K Mittal of Ispat Group, India - have put in competing bids for a $45-million privatisation package of a sick steel plant in Romania.
This is the first time the two have come into conflict since they segregated their operations. Ispat India's bid for an overseas acquisition is also its first since the segregation of operations.
The third bidder for the Romanian plant, Siderca Calarasi, is Austria's Voest Alpina Schienen.
The State Ownership Fund (FPS) in Romania has received the three offers for buying the majority share package of Siderca Calarasi. Sources said a decision is expected shortly.
Privatisation of Siderca, which is currently steeped in losses, is being seen as the only way to turn it around. The plant functions at 10 per cent of its capacity, sources told Business Standard. FPS' initial price was pegged at $45 million.
When contacted, Vivek Sett, finance director of Ispat Industries declined to comment on the issue, saying it did not concern Ispat Industries as a company in particular. The official spokesperson for Ispat International too declined to comment.
The construction of Siderca Iron and Steel Works began in 1986 but was stopped in 1990 due to a funds crunch. The Siderca management is hoping the group which takes over the plant will complete the construction. The management had commenced restructuring of operations four years ago.
The sources said the plant employs 2,500 people. Jobs may, however, be cut following the takeover. The Mittal group, under a single umbrella was known to be a turnaround expert.
L N Mittal's UK-based Ispat International, now, controls all the overseas operations of the group, spread over countries like Mexico, Indonesia, Trinidad and Tobago and Germany. The group has under its wing Irish Ispat Ltd (Ireland), Ispat Sidbec (Canada), Ispat Mexicana (Mexico), Ispat America, Inland Steel and Walker Wire (Ispat) in the US and several other outfits in Kazakhstan and the UK.
Ispat International NV and Ispat Karmet Holdings BV, Netherlands are the L N Mittal group's chief holding companies.
P K Mittal's Ispat Group, India, is into investments in steel, power and telecommunications sectors.
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