Cash-poor Stelco said rich with new options

Nov 10, 2004 | 11:43 AM | Scott Robertson

Stelco Inc., Hamilton, Ontario, in the midst of a financial restructuring, now has several options available.

The company on Wednesday acknowledged receipt of a purchase offer from Russian steel giant JSC Severstal, Cherepovets. Meanwhile, Deutsche Bank AG, Frankfurt, Germany, one of Stelco's largest bondholders, is negotiating to raise at least Canadian $200 million ($167 million) for the company through a rights offering to creditors. Another group, GMP Capital Corp., Toronto, has approached Stelco with a plan to finance an injection of C$215 million ($180 million) in equity capital.

There might be more options, but the company isn't saying what they are. "All I can confirm is that we have received something from Severstal," a Stelco spokeswoman said Wednesday.....

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