PHS - deadline nears for three potential investors

All three firms interested in top steel group Polish Steel Mills (PHS) are expected to place binding offers by April 22 and to complete the purchase by the end of June. The long-delayed sell-off of PHS, which produces 70% of domestic output, has attracted the world's two largest steel makers - Arcelor and LNM Group - as well as U.S. Steel. "We have no favorite player. All the bidders have shown great involvement in the tender and take it very seriously," said Deputy Treasury Minister Andrzej Szarawarski. The steel sector is racing to streamline before state aid runs out in 2006, as agreed with the EU last year. In the first stage of the PHS sale, an investor would take on zł. 1.6 billion of debt owed to state-owned energy suppliers and railways. Afterwards, the government expects the successful bidder to pump as much as $150 million into the company to provide funds for its technology upgrade. In the last stage the state wants to dispose of all the remaining shares to the new investors or retain a stake of 25% plus one share in PHS. (Reuters) K.Ż.