Charlotte based Nucor offers to buy most of assets of Birmingham Steel

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Posted 11:43AM on Thursday, February 14, 2002

CHARLOTTE, N.C. - In the latest consolidation move in the ailing U.S. steel industry, Nucor Corp. on Thursday offered to pay $500 million in cash for most of the assets of Birmingham Steel Corp. Based in Charlotte, the nation's second-biggest steel maker's is "prepared to move quickly to complete the transaction on a negotiated basis," Nucor vice chairman and president Daniel R. DiMicco said in a news release. The offer does not include Birmingham Steel's Cleveland plant, Nucor said. In a letter to John Correnti, chairman and chief executive of the Birmingham, Ala.-based steel maker and Nucor's former CEO, DiMicco said Nucor was prepared to complete the deal in 30 days. A deal would create "one of the strongest, most stable and most successful steel producers in North America, with the ability and commitment to continue to build the value of Birmingham's operations for all concerned," DiMicco wrote. "We trust that Birmingham's bard of drectors will seriously consider this letter in accordance with its fiduciary duties to its shareholders, creditors and other stakeholders, and we look forward to your response," he wrote. Telephone messages left with Birmingham Steel executives were not immediately returned Thursday morning. In its most recent earnings report last month, Nucor said its fourth-quarter profits were down by 66 percent because of depressed demand for steel in a recession and lower prices. However, Nucor is faring better than other U.S. steel companies, who have suffered in the face of cheap imports and rising costs since 1998. Shares of Nucor were down 3 percent, or $1.77 a share, at $56.88 in morning trading Thursday on the New York Stock Exchange.