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Fresh doubts about British Steel as bid hopes fade | Fresh doubts about British Steel as bid hopes fade |
(about 4 hours later) | |
The government is ready to open talks with bidders for British Steel after failing to agree terms with the Turkish company granted exclusivity in August. | |
Turkey's Ataer Holding had until Thursday to reach an agreement to buy the business, which includes the works in Scunthorpe. | |
Since May, British Steel has been kept running by the government as it seeks a buyer for the business. | Since May, British Steel has been kept running by the government as it seeks a buyer for the business. |
Some 5,000 jobs are directly at risk and another 20,000 in the supply chain. | |
British Steel was put into compulsory liquidation in May after rescue talks with the government broke down. | British Steel was put into compulsory liquidation in May after rescue talks with the government broke down. |
The Official Receiver said on Wednesday that while discussions with Ataer were continuing, it was now possible to talk to other potential bidders. | |
Ataer owns nearly 50% of Erdemir, Turkey's biggest steel producer, and is the investment vehicle of the Turkish Armed Forces Assistance Fund (known as Oyak), the pension fund for the country's armed forces. | |
MPs have voiced concerns about Ataer's links with the Turkish government following the country's military crossing into Kurdish-held parts of Northern Syria. | |
The Official Receiver said: "While discussions with Ataer are continuing, discussions with other parties who have expressed continued and renewed interest in acquiring the whole British Steel business will now be possible. | |
"I have instructed the 'special managers' [at accountants EY] to engage with these additional interested parties. | |
"Diligence team members from these parties are expected to visit the company's sites over the coming days and weeks. | |
"Meanwhile, Ataer remain very much interested in acquiring the business and we remain in detailed discussions with them to conclude a sale." | |
'Consider all options' | |
It is expected that Liberty House, run by businessman Sanjeev Gupta, is likely to rekindle its interest in buying British Steel. | It is expected that Liberty House, run by businessman Sanjeev Gupta, is likely to rekindle its interest in buying British Steel. |
Liberty House already owns facilities in Rotherham and Stocksbridge, both in South Yorkshire, and employs 5,500 people across some 30 sites in the UK. | Liberty House already owns facilities in Rotherham and Stocksbridge, both in South Yorkshire, and employs 5,500 people across some 30 sites in the UK. |
Steve Turner, Unite assistant general secretary for manufacturing, said he had written to Business Secretary Andrea Leadsom requesting an urgent meeting. | |
"It is vital that the government continues to stand behind British Steel until the sale process is finalised to maintain customer, supplier and workforce confidence in a company which can have bright future," Mr Turner said. | |
He said it was a "strategically important business" which provides 95% of the UK's rail tracks and supplies other UK steelmakers with product. | |
Nic Dakin, the Labour MP for Scunthorpe, said he was in regular contact with the business secretary, trade unions and the British Steel special managers. | |
"The fundamentals of British Steel are unchanged. This is a strong business, which is reflected by the continued interest of a number of parties in buying British Steel. I am continuing to do everything I can to ensure that there is a successful outcome," Mr Dakin said. | |
The Official Receiver said the focus was on achieving a sale as "quickly as possible". | |
"The conclusion of the exclusivity period allows us to consider all of the options available at this point in the process. I would like to thank the team at British Steel for their continued support and hard work during this period of uncertainty," the Official Receiver said. |