Dutch firm loses interest in National Steel

Dutch firm Ispat International NV is no longer interested in acquiring the debt-stricken National Steel Corp. (NSC), Trade and Industry Secretary Manuel Roxas II said yesterday.

Ispat was recently reported to have tendered a $100-million bid for the debt-saddled steel maker.

"Ispat appeared earnest in its desire to acquire NSC, but it never put up the money to back up its offer," Roxas said. The other bidders, Roxas said, "are still probably interested, but have not communicated any change in their position."

The other interested bidders include Swiss firm Glencore International AG; Novolipetsck Iron and Steel Corp. of Russia; Duferco S.A.; Grupo Jacinto and Allengoal. "Most of the interested groups appear to prefer to just enter into a tolling/rental arrangement with the firm," Roxas explained, adding that "interest in NSC is dampened by its financial problem."

NSC owes 14 local banks a total of P14 billion.

The government owes 12.5 percent of the beleaguered firm. In 1995, the government sold majority interest to Malaysian firm Wing Tiek Holdings Berhad, which later sold the shares to Hottick Invesments Ltd. – Marianne Go

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