PITTSBURGH, Dec. 9 /PRNewswire/ -- United States Steel LLC (NYSE: X)
confirmed today that, although no agreement has been reached, it is in talks
with NKK Corporation of Japan and National Steel Corporation concerning a
possible acquisition of National Steel by U. S. Steel. The potential
acquisition would be consistent with the goal of consolidation in the domestic
integrated steel industry.
Any acquisition would be contingent on a number of significant conditions,
including a substantial restructuring of National Steel's debt and other
obligations. U. S. Steel will proceed only if the acquisition would be in the
best interests of its company's shareholders, customers, employees and
creditors.
Steel industry consolidation is contingent upon several key elements.
First, it requires the implementation of President Bush's three-part program,
announced June 5, 2001, to address the excessive imports of steel that have
been depressing markets in the United States. A critical part of the
President's program is a strong remedy under Section 201 of the Trade Act of
1974 (Section 201). Second, it calls for the creation of a
government-sponsored program that would provide relief from the industry's
retiree legacy cost burden - primarily pension and retiree health care
costs -- thereby removing the most significant barrier to consolidation of a
highly fragmented industry. Third, it requires a progressive new labor
agreement that would provide for meaningful reductions in operating costs.
Industry consolidation referenced above is subject to numerous conditions,
some of which are described above. Many of these conditions depend upon
actions by other parties, such as the federal government. There is no
assurance that consolidation will occur, nor any specificity concerning the
terms upon which it might occur. Financial performance and results in the
steel industry, including the results of United States Steel if any
consolidation occurs, will be influenced by many factors. In accordance with
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995, USX has included in Form 10-K for the year ended December 31, 2000, as
amended in Forms 10-K/A, and in subsequent Forms 10-Q and Forms 8-K,
cautionary statements identifying important factors, but not necessarily all
factors, that could influence such results.
(For more information on U. S. Steel, visit our Website at http://www.usx.com or
http://www.ussteel.com.)
Visit USX Corporation's web site at http://www.usx.com . USX Corporation
press releases are available through Company News On-Call at
http://www.prnewswire.com/gh/cnoc/comp/929150.html .
SOURCE U.S. Steel Group
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Related links:
http://www.ussteel.com
http://www.usx.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/929150.html
CONTACT:
Tom Ferrall, +1-412-433-6899, or John
Armstrong, +1-412-433-6792, or Mike Dixon, +1-412-433-6860, all
of United States Steel LLC
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