PHS sell-off to cost investor zl. 1 .6 billion in debts

The Treasury Ministry expects a potential investor to venture zl. 3 billion in the privatization of Polish Steel Mills (PHS), which troubles US Steel as one of the most serious candidates to purchase PHS. The investor will be obliged to buy off PHS's liabilities, worth zl. 1 .6 billion. "Payments of public debts have a major influence on the company's value," said US Steel vice-president John H. Goodish, justifying the firm's worries. Despite its apprehension, US Steel has not withdrawn from the PHS race, as it expects steel consumption in Poland to grow to 9.7 million tonnes in 2010, from 7.7 million tonnes last year. "The level of production will be controlled until 2006, after that we plan to increase production," said Goodish. April 14 is the deadline for offers from PHS's prospective buyers who are, apart from US Steel, LNM and Arcelor. (Puls Biznesu, p. 7) K.? .