voestalpine AG — M&A Activity 1999

Jan 18, 1999

News Details

Ad-hoc | 18 January 1999 09:01

Ad hoc-Service: VOEST-Alpine Stahl AG

Ad hoc-Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— VOEST-ALPINE STAHL and HOOGOVENS terminate negotiations in Poland VOEST-ALPINE STAHL AG and KONINKLIJKE HOOGOVENS NV have agreed that they terminate negotiations relating to the privatisation of the Polish integrated steel companies under current conditions. In the meantime, this decision has been communicated to the Polish partners. The main considerations, which led to this step, are as follows: . In the opinion of VOEST-ALPINE STAHL and HOOGOVENS, the perspectives in the Polish steel product market remain interesting, for despite the difficult current market situation, above-average growth rates can be anticipated in the medium- and longer term. . However, following intensive analyses by VOEST-ALPINE STAHL and HOOGOVENS, it is clear that the actual structures in the integrated Polish steel industry do not permit the expectation that privatisation can be achieved with sustained success, considering that the required level of investment for the restructuring of the integrated steel plants in southern Poland will be extremely high. . With regard to Huta T. Sendzimira S.A., VOEST-ALPINE STAHL and HOOGOVENS came to the conclusion that it will be difficult to obtain a structurally competitive cost price for the metallurgical basis, even after executing a considerable investment program. For that reason, continuation as an integrated flat steel producer on a stand-alone basis does appear problematic in view of the international and the future domestic competition. . As expressed ever since the summer of 1997, VOEST-ALPINE STAHL and HOOGOVENS are convinced that in the interest of the Polish steel industry, a framework should be provided for an integrated solution for flat steel production at Katowice and Sendzimira. This framework still has not been created and moreover the invitation to tender for a consultant to accompany the Katowice project is still separated from the privatisation of Huta Sendzimira. In view of these considerations, and following intensive analyses and discussions, the decision has been taken to terminate the project. Further information will be provided at a press conference today in Linz at 11 a.m. CET (10 a.m. GMT). Linz, Jan. 18, 1999 Ende der Mitteilung