Numetal, ArcelorMital add riders to Essar Stee bids

Numetal Consortium and ArcelorMittal, the two initial bidders for Essar Steel, have attached conditions before they make any correction in their bid or any action they would take to acquire the steel asset, an industry source told DNA Money. According to a source, the Russian VTB Bank-backed Numetal consortium has offered to match the superior bid of ArcelorMittal only if the latter is declared ineligible. In the first round of bidding, Numetal had offered to pay off Rs 18,000 crore of Essar Steel’s total debt of Rs 49,000 crore against ArcelorMittal’s offer of Rs 32,000 crore. ArcelorMittal has also attached a string to the removal of a defect in its bid, entailing paying off debts of stressed KSS Petron and Uttam Galva. According to the source, ArcelorMittal wanted “some kind of guarantee” before it pays the debts of KSS Petron and Uttam Galva. A source said “I don’t think ArcelorMittal would pay INR 8,000 crore debt (of KSS Petron and Uttam Galva) as it is not sure that it would be eligible even after paying off. It doesn’t want to take the risk of INR 8,000 crore loss or let that money go down the drain. That is why it is asking for some kind of guarantee from lenders before it does that.”