Fri, March04, 2011
Alexey Mordashov, CEO of Russian steelmaking group Severstal, has stated that the sale of the Italian Severstal-owned Lucchini Group "does not look realistic under current market conditions." The statement by the Russian tycoon, who reached an agreement with banks last month for the restructuring of Lucchini's $770 million debt, was made during a conference call with financial analysts.
Accordingly, after the Mordashov announcement, Lucchini's sale now looks less likely to happen. Domestic trade unions, concerned by the situation, underline the need for a rapid sale of the company, which operates an integrated steelmaking facility in Piombino, Livorno. "The agreement reached with the banks does not award Mordashov the control of Lucchini Group," explained Luciano Gabrielli, local leader of the Fiom trade union. "The Piombino steel mill is in trouble and things are going to worsen if there is no change," he added.
Another local trade union official stated, "Mordashov's view is scarcely understandable, as it is up to the bank to set the schedule for any transaction. At this point it is necessary that Italian government meet the national and company trade unions to discuss the future of the factory".
Accordingly, after the Mordashov announcement, Lucchini's sale now looks less likely to happen. Domestic trade unions, concerned by the situation, underline the need for a rapid sale of the company, which operates an integrated steelmaking facility in Piombino, Livorno. "The agreement reached with the banks does not award Mordashov the control of Lucchini Group," explained Luciano Gabrielli, local leader of the Fiom trade union. "The Piombino steel mill is in trouble and things are going to worsen if there is no change," he added.
Another local trade union official stated, "Mordashov's view is scarcely understandable, as it is up to the bank to set the schedule for any transaction. At this point it is necessary that Italian government meet the national and company trade unions to discuss the future of the factory".
Tags: Italy , Europe , Severstal , M&A , steelmaking , European Union , Mediterranean
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