VSŽ shareholders approve entry of US Steel
Almost all shareholders present at the October 12 shareholders' meeting of steel maker VSŽ Košice approved the entry of strategic investor US Steel into the company.
Shareholder representation at the meeting reached 82.33% of voting rights, and 99.98% of those present voted in favour of the proposal of the board of directors to accept the bid. VSŽ is the largest metals company in Slovakia, employing almost 25,000 people.
Following the deal, US Steel is to take over core steel-manufacturing activities in VSŽ based on a series of agreements with VSŽ, the Slovak government and a consortium of bank creditors signed September 29.
The American firm will pay between $425 million and $475 million (21 billion to 23.4 billion crowns) for VSŽ with $325 million of the sum to be used for paying off past VSŽ debts and a further $15 million in tax arrears.
SLK board of directors dismisses management
The new board of directors of the Komárno-based shipyard SLK dismissed the executive leadership of the company October 14. A new private security service, Patrol, has been taken on to secure the better protection of SLK property.
SLK supervisory board chairman Jozef Zucha said that the decision was taken because 16 SLK subsidiaries have not re-merged within a timeframe set as one of the conditions of a 29.5 million DEM government-guaranteed loan, as well as the dismissed board of directors' unsatisfactory results in fulfilling an approved plan for consolidation.
Compiled by Ed Holt
23. Oct 2000 at 0:00