Tuesday, January 17, 2006

Steel Wars-Why Isn't This An Election Issue

The battle is on in Canada's idigenous steel industry. Stelco is restructuring while Dofasco faces hostilbe take over bids. Meanwhile what are the political parties saying about this? Nada, nothing, zip. Not an election issue.

Losing our indigenous steel industry is NOT an election issue. This says a lot about priorities. Or lack of them. If Dofasco is sold, it will allow the Europeans an in to the North American market, without worrying about U.S. tarrifs and protectionist policies. And this is not an election issue.

And while it is non-union, Dofasco is the most efficient steel plant in North America. So why is it being allowed to be sold to European interests. With nary a peep out of the Liberals or Conservatives. This is the real story behind the election in Hamilton. And why the NDP will win seats there.


How high can Dofasco bids go?
Arcelor tops offer by German rival
New Dofasco bid is $71 a share

Arcelor bid wins Dofasco board's blessing Globe and Mail

Industry watchers regard Dofasco as a jewel of the North American steel industry because of its efficiencies and high-end steel customers, particularly major auto manufacturers.Dofasco, whose motto is, "Our product is steel. Our strength is people," employs about 11,000 workers and ships more than 5 million tonnes of steel annually. It is Canada's biggest steel maker. The takeover battle will likely leave the company under foreign control for the first time in its 94-year history."Dofasco is the best-run steel company in North America. It's the most profitable. It's the most efficient," Ryder said. "It's a bit like a Van Gogh has come on the market. They don't come on very often."

STEEL
Stelco board has spot for new CEO

By GREG KEENAN
Globe and Mail
Tuesday, January 17, 2006 Page B3

STEEL REPORTER

The proposed board of directors for Stelco Inc. includes a chair for the new chief executive officer who will replace Courtney Pratt, the man who steered the steel maker through two years of creditor protection.

Two managing partners of Tricap Management Ltd., a Brookfield Asset Management Inc., restructuring fund, and two Tricap nominees are among the nine members on the board, Stelco said in a release.

Mr. Pratt has been nominated as chairman. His replacement as CEO has not been named.

Mr. Pratt will be joined by Cyrus Madon and Peter Gordon, managing partners at Tricap. Tricap also nominated John Lacey, chairman of Alderwoods Group, North America's second-largest operator of funeral homes and cemeteries, and Tony Molluso, president and CEO of Concert Industries Ltd.

Two hedge funds that will take an equity stake in Stelco each nominated one director.

Sunrise Partners LP of Toronto nominated Laurie Bennett, a retired audit partner at Ernst & Young LLP. New York-based hedge fund Appaloosa Management LP chose Steven Cohn, managing director of Alvarez & Marsal LLC, a New York turnaround and restructuring firm.

Also picked for the board is Pierre Dupuis, former chief operating officer of Dorel Industries Inc.

Stelco Bankruptcy

Also See Time For A Canadian Steel Workers Union

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