GIHL scores LNM over Nat’l Steel bidding issue

Global Infrastructure Holdings Limited (GIHL) has finally broken its silence on the continuing complaints of the LNM Group over the bidding for the Philippine National Steel Corp. (NSC).

Speaking on behalf of GIHL, Sushant C. Das, president-designate of GIHL, expressed his regret yesterday over the recent statements by Eric Tierie of LNM Holdings N.V. describing the NSC bidding as "unfair."

"As you know, our two companies have grown from one base. Thus, we have been reluctant to now engage in public dispute. Regretably, recent statement by Mr. Tierie of LNM Industries are not only wildly inaccurate, but actually close to misrepresentations," Das said.

Das continued that "it is sad to see a firm bearing the name we share and respect, stoop to accusing the SEC appointed liquidator and major Philippine banks of unfairness and irregularities in the bidding process."

Das insisted that the accusations are "totally false and hardly the way to develop constructive business relations in the Philippines."

He even admonished the LNM Group, saying "to lose a tender does not give one the right to act in such a way."

Das noted that Tierie’s recent letter to Trade and Industry Undersecretary Gregory Domingo was "riddled with inaccuracies, exaggerations and downright falsehoods."

Das assured that the tender process was clear and open, with published terms of reference, opportunities for all bidders to clarify questions, access to site for all, and a clear closing date.

Both parties, furthermore, Das said, were treated equally and with fairness.

However, Das stressed, "GIHL’s bid was clearly superior."

Das noted that the "superior" cash bid on LNM of P2.5 billion "appears months after the bid closed."

He also criticized the "intended generous profit scheme" of LNM which is "of little help if it remains an intention."

Das pointed out that "LNM had every chance to make its scheme explicit in the bid, but failed to do so."

Das clarified that GIHL is "no novice to international markets" as falsely stated.

He replied, "Mr. Tierie of LNM should be well placed to know that both GIHL and LNM’s top management and resources all belonged to one company until a few years ago. Through its executives, GIHL has a wealth of experience, much of it gained in the very plants now controlled by LNM Industries."

Das confirmed that the investment needed to rehabilitate and re-operate NSC would be between $80 million to $100 million, "as any serious bidder knows, and similar figures feature in GIHL’s business plan."

Das expressed suspicion that the $25 million that LNM is quoting as the investment of GIHL was an incomplete reading of GIHL’s offer.