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Gold/Mining/Energy : TITANIUM CORPORATION INC.- The Next Major Mining Play -- Ignore unavailable to you. Want to Upgrade?

To: Winzer who wrote (159)	11/22/1999 10:45:00 AM
From: chevalier	Read Replies (2) \| Respond to of 343

This article came out today across Canada in the Globe and Mail, as well as making the porvincial papers in Halifax. Looks like things are really going to heat up over the next month or so. Second U. S. firm emerges as possible Sysco purchaser By Murray Brewster / The Canadian Press Competition for Cape Breton's hard-luck Sydney Steel plant is heating up with the arrival of a second potential buyer. The unidentified company, from the western United States, recently passed financial requirements set out by the Dutch investment bank that's been trying to sell the money-losing Crown mill. Premier John Hamm confirmed that a second bidder has passed the financial hurdle, but refused to provide the name or any other details. "They're a group that's certainly very serious and meets all of the requirements that the Amro bank have made in terms of a responsible bid," Hamm said in an interview. ABN Amro is handling the sale of Sysco. Officials with the new bidder toured the mill last week, ending their visit Thursday. They are competing with The Reserve Group, a consortium based in Akron, Ohio, which first appeared in late October. Others, such as a Russian firm, have expressed interest but have not been able to get to the second stage of bidding. Reserve looked at the plant earlier this month and has been reviewing detailed financial data on the Crown corporation, which has swallowed nearly $3 billion of taxpayer money since the province took it over 30 years ago. Sources say Reserve will make a return visit to Sydney within the next couple of weeks to get more details before actually putting a firm bid on the table. Hamm said the province will become actively involved once there's an offer. Reserve officials were initially reluctant to bid because a preliminary look at Sysco's books showed a decline in orders at the plant. That almost caused them to drop out of the bidding, but it's been suggested the company be allowed to run Sysco for a few months before taking possession. Reserve has offered to operate the mill without a fee while it tries to rebuild the order book, but the province seems cool to the idea. "We're not making comment on one bidder over another," said Hamm. "We are looking for a potential purchaser that will allow the province to stop operating Sysco. "It has yet to be determined if that purchaser is going to come forward. By 'come forward' I mean sign to purchase the plant." The fledgling Tory government is operating on a tight deadline. It promised during the summer election to close the mill if a buyer couldn't be found quickly. Economic Development Minister Gordon Balser has said that if no deal has been signed by Dec. 31, cabinet will decide whether to start the wind-down process. Opposition parties have clamoured for information about the sale, but the Tories have remained silent, saying they don't want politics to scuttle a potential deal. New Democrat MLA Frank Corbett said that given the massive public investment and the worry for the 700 steelworkers, the government should be saying something. It's an argument Hamm rejects. "There's only one message the public wants to hear," Hamm said. "Sysco is sold to a responsible buyer."