Arcelator and LNM Group file bids for Polish Steel

The world's two largest steel producers, Arcelator and LNM Group, said yesterday they had placed initial bids in the privatization tender for top steel group Polish Steel Mills (PHS). US Steel, a leading contender in the race for a large chunk of central Europe's steel industry, declined to comment while Germany's ThyssenKrupp pulled out after earlier expressing an interest in the sell-off. The State Treasury, which had counted on at least six offers after sending out invitations to a dozen steel companies last year, said it may issue a statement of investor interest in the long-delayed sale today. Monday was the last day for placing initial bids for PHS, which produces approximately 70% of the country's steel output and must be gradually weaned off state aid as part of the country's EU accession deal. "If we succeed in the tender we would like PHS to become the cornerstone of LNM's European production base and the hub of our future strategy in the region," said Sudhir Maheshwari, chief financial officer at LNM Holdings. (Reuters) A.Z.