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Thursday, January 31, 2002

By The Associated Press

CLEVELAND -- At least six possible bidders have emerged in the upcoming auction of LTV Corp.'s idled steel mills in Cleveland; East Chicago, Ind.; and Hennepin, Ill.

"Several parties have expressed interest in various combinations of our integrated steel assets," according to LTV spokesman Mark Tomasch, who said he could not confirm the names of any bidders.

Written expressions of interest were due Monday, bids are due Feb. 20 and bids will be reviewed Feb. 27.

Tomasch said LTV would select buyers that present the best offers and have "a demonstrated ability to complete the transaction."

A sale would require approval from a federal bankruptcy judge.

LTV, which has operated under Chapter 11 bankruptcy protection since December 2000, idled its mills in December.

U.S. Steel Corp. spokesman Mike Dixon confirmed the company's interest but would not say which assets the company wanted. Last year, the steelmaker acquired assets of LTV's tin mill business, which produces coated sheet steel used in food cans and other containers. The equipment was located at its former Aliquippa Works and the East Chicago plant. Industry observers have speculated that U.S. Steel's primary interest in LTV's remaining plants centers on the Hennepin mill, a steel finishing plant.

Cleveland-Cliffs Inc. spokesman Ralph Berge in Cleveland said the iron-ore company was looking at LTV's idled Cleveland operations and was reviewing LTV's detailed financial statements.

In addition, Bethlehem Steel Corp., based in Bethlehem, Pa.; Brazil's Companhia Siderurgica Nacionale of Rio de Janeiro; Canada's Dofasco Inc., of Hamilton, Ontario; and China's Shanghai Baosteel Group Corp. plan to bid, The Plain Dealer reported.

Like LTV, Bethlehem Steel is in bankruptcy and has discussed a possible merger with U.S. Steel. Bethlehem spokeswoman Bette Kovach could not confirm or deny any of the company's plans to bid.

Ian Hamilton, a spokesman for Dofasco, said the company would have no comment.

Midwest Research analyst Chris Olin said the Brazilian company probably was interested in the rolling mill of LTV's Cleveland plant and probably would use it to roll slabs shipped from Brazil.

China's Baosteel has a reputation for buying plants for disassembly and shipment to China, Prudential Securities analyst John Tumazos said.