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Stelco financing by deutsche bank gets court approval Original Source Link: (May no longer be active)    http://www.bloomberg.com/apps/news?pid=10000082&sid=aTHoV7bB7wqo&refer=canada http://www.bloomberg.com/apps/news?pid=10000082&sid=aTHoV7bB7wqo&refer=canada Stelco Financing by Deutsche Bank Gets Court Approval (Update2) Nov. 29 (Bloomberg) -- Deutsche Bank AG's C$900 million ($759 million) proposal to provide financing to Stelco Inc. was approved by an Ontario judge over the objections of rival bidders and Stelco's unions. Ontario Superior Court Judge James Farley, who is overseeing the restructuring of Hamilton, Ontario-based Stelco following its filing for bankruptcy protection in January, said Deutsche Bank's proposal will provide the benchmark for evaluating competing bids. Deutsche Bank offered C$900 million in exchange for convertible debentures equal to shares totaling 47.6 percent of a restructured Stelco. Existing shareholders will get 9.3 percent, with remaining shares going to unsecured creditors. Any company bidding to provide financing to Stelco must surpass the Deutsche Bank bid in what is known as a stalking horse process. The bid ``will provide (Stelco) with much needed stability,'' Farley wrote in a decision released today. ``Deutsche Bank's bid is not a foregone conclusion to ultimately succeed.'' GMP Capital Corp. and General Electric Co.'s Canadian financing unit on Nov. 26 offered C$1.1 billion in financing, increasing an earlier proposal by C$50 million. Existing shareholders would have kept at least 22 percent of the company with that plan. Stelco rejected the offer, following weekend discussions with its financial advisers and GMP, because it said it would take too long to complete. Three to Four Weeks GMP and GE Canada said it would take three to four weeks to complete the required research to complete the bid, Ernst & Young Inc., the court-appointed monitor, said in a report to the judge. ``The monitor is of the view that it is inappropriate for parties to deliver bids to Stelco while the honorable Mr. Justice Farley is considering his decision,'' Ernst & Young said. Stelco, which sells sheet steel to automotive customers including DaimlerChrysler AG and Ford Motor Co., filed for protection from creditors because of high costs for energy, labor, pension and raw-material costs. Stelco lost General Motors Corp., its biggest customer, when it failed last week to get the steelworkers' union to sign a no-strike agreement. The company had net income of C$58 million in the third quarter, compared with a net loss of C$42 million a year earlier, as steel prices surged on higher demand from China. Sales rose 47 percent to C$953 million. Stelco's widely traded Class A shares fell 14 Canadian cents to C$2.06 on the Toronto Stock Exchange. They have declined 16 percent this year. Labor Objections The steelworkers objected to the Deutsche Bank proposal, saying it puts the interest of creditors ahead of the company's pensioners. Stelco's pension plan has a C$1.2 billion deficit that the Deutsche Bank proposal fails to address, Ken Neumann, national director of the United Steelworkers of America, said in an interview last week. The union represents about 1,000 employees at Stelco's Lake Erie plant. Russian steelmaker OAO Severstal and Pittsburgh-based United States Steel Corp., two companies that have said publicly they're interested in buying Stelco, said that Stelco management hasn't taken their offers seriously and made it difficult to enter bids by requiring confidentiality agreements that didn't allow bidders to speak with government officials, unions or suppliers. The terms of those agreements have now been eased. Severstal, United Steel and GMP can all submit bids by a Jan. 31 deadline and try to beat the Deutsche Bank offer. ``We weren't trying to squeeze them out at all,'' Stelco Chief Executive Courtney Pratt said in a telephone interview. ``Given the firmness of the Deutsche Bank bid, this is the best stalking horse bid.'' Last Updated: November 29, 2004 18:31 EST

90s-bubble african-union arabia brit-pound china-yuan citigroup dissent euro federal-reserve gold-scam imf narcotics pacific-union predatory terror-links-to-banks US-debt US-dollar Bank of america creating 2nd biggest bank { October 27 2003 } Bank of america to be penalised for mutual fund scandal { March 5 2004 } Bank of american defrauded stock holders Bank of egypt Bank of japan hardens intervention tactics { February 25 2004 } Bankers secret world { July 14 2002 } Bankofamerica rigged finances italian dairy group { March 17 2004 } Banks monopoly { March 6 2001 } Banks own control nations wealth { October 23 2004 } Banks privilages { August 29 2002 } Banks responsible for housing bubble { July 13 2007 } Beijing to invest 100b in latin america Big banks operate monopoly { March 6 2001 } Bofa 47b merger seals deal { March 18 2004 } Bofa profits jump 3prc Brokers get kickbacks for fund promotion { January 13 2004 } Bush friend to handle iraqi international debt { December 6 2003 } Bush signs bankruptcy law to protect banks { April 21 2005 } China keeping US long term rates down Cleveland bank 1978 wants municipal go private Debeers pleads guilty in 10yr old price fixing case { July 13 2004 } Doj pursuit taxrebels { November 9 2002 } Eu ceo accounting scandal Fake earnings reports Fed only central bank raising rates Financial firms bankroll republican events { August 30 2004 } Global monetary europe experience Global monetary history Goldman president named new head of stock exchange { December 18 2003 } Growth of finance giants threatens stability markets { February 25 2004 } Hbsc to stop buy sell stock tips { February 24 2004 } Illegal trading after hours { November 3 2003 } Income tax unconstitutional supreme court 1895 Japan moves its interest rate up from zero { January 2007 } Jpmorgan chase buys bankone second largest bank { January 15 2004 } Louisiana purchase london bank { May 2 2003 } Mutual fund money pours into market { March 18 2004 } Mutual fund putnam profits expense costumers { November 4 2003 } Offshore tax havens 1b { May 27 2003 } Peruvian president calls for south american currency { January 17 2007 } Russians buying cars homes televisions on credit Spurring more bank mergers { October 27 2003 } Stelco financing by deutsche bank gets court approval Surging currency australia trade deficit { October 30 2003 } Terrorism financing banking laundering { September 24 2001 } What central bankers earn { August 24 2003 } Worldcom probe of citigroup morganchase deutschebank { March 19 2004 } Files Listed: 47

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