Italian Minister of Economic Development Flavio Zanonato visited the plant with his Undersecretary of State, Claudio De Vincenti, along with president of the Umbria region Catiuscia Marini, the president of the province, Feliciano Polli, and Terni Mayor Leopoldo Di Girolamo.

 

The group of government representatives met with union representativs and company management officials and have now confirmed their maximum commitment in the dispute involving the future of the steel industry in Italy.

 

Signor Zanonato and Signor De Vincenti have said that the important thing for the government is that the industrial profile of the sale outweighs the financial one and that production and employment are guaranteed.

 

In his speech, Sigor Zanonato assured collegiality in making any choice: “We have a work table,” he said, “and we’ll reconvene it. Anyway, we will decide together with the institutions and workers.”

 

Signor De Vincenti reiterated the need for a clarification meeting with Outokumpu and ThyssenKrupp to define the industrial prospects of the settlement of Terni. “Any judgment on the sale depends on the plan that the German group will present,” he stressed.

 

Outokumpu announced on Nov. 30 comprehensive measures to strengthen its balance sheet and the divestment of Terni and VDM business to ThyssenKrupp in exchange for Outokumpu's loan note to ThyssenKrupp (1.269 million euroes at the end of September 2013) at full amount at closing. On Dec. 9, Outokumpu commented on the speculations related to the transaction made with ThyssenKrupp. 

 

First, Outokumpu believes that with this arrangement the company has secured the best possible price on Terni and VDM under the circumstances. The consideration for the transaction for both business units is higher than the market estimates in the past months. Second, the consideration for the divestment of Terni and VDM was determined separately from the sale of ThyssenKrupp shareholding. Outokumpu was not involved in the negotiations regarding the terms and conditions of the sale of ThyssenKrupp's Outokumpu shares. 

 

ThyssenKrupp committed to sell its 29.9 percent shareholding in Outokumpu due to the requirement of the European Commission regarding the buyer suitability for Terni remedy assets that restricts ownership between Outokumpu and ThyssenKrupp. ThyssenKrupp agreed on the price of the shares with the buyers and Outokumpu emphasised that it was not a party to the sale of the shares. 

 

It is Outokumpu's understanding that the price of these shares was influenced by the size of ThyssenKrupp's current shareholding stake in Outokumpu, the tight timeframe caused by the requirement of the European Commission, and the special terms and conditions of the planned rights issue of Outokumpu to which the buyers of the shares had to commit to. 

 

Outokumpu believes that the transaction with ThyssenKrupp benefits all Outokumpu shareholders as the consideration for Terni and VDM business is the best possible under the circumstances and the arrangement significantly strengthens the company's balance sheet.