Back to News ReleasesJUDGE RULES IN FAVOR OF WCI STEEL
June 27, 2008 – In response to media inquiries concerning the decision by the Court of Chancery of the State of Delaware’s Vice Chancellor Lamb relating to the scheduled closing of the sale of WCI Steel, Inc. (WCIS.PK) to OAO Severstal, the following statement was issued:
“The management, employees and most shareholders of WCI Steel, Inc., are pleased with the ruling of Vice Chancellor Lamb in the Court of Chancery of the State of Delaware not to preliminarily enjoin the closing of the sale of WCI Steel, Inc. to Severstal in connection with the suit of Optima International of Miami and a small group of dissident shareholders. We expect to receive shortly the approval of the sale by the Committee on Foreign Investment in the United States and to finalize the sale to Severstal very early in July.”
About WCI Steel, Inc.
WCI Steel’s strength is built on “Custom Steel. Custom Service. Creative Solutions.” As an integrated producer of value-added, custom steel products serving niche markets, WCI Steel emphasizes customer and technical service. WCI Steel currently produces 185 grades of flat-rolled custom and commodity steel products at its Warren, Ohio facility. WCI Steel focuses on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength, and heavy-gauge galvanized steel and on developing closer, more responsive relationships with customers. Major customers are steel converters, processors, service centers, construction product companies, and pipe and tube manufacturers.
About Severstal
OAO Severstal is an international metals and mining company with a listing on the Russian Trading System and the London Stock Exchange. Incorporated in 1993, the company focuses on high-value-added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. Severstal owns mining assets in Russia, thus securing its supplies of raw materials. In 2007, Severstal produced 17.5 million tons of steel. Revenues were $15.2 billion, and EBITDA was $3.7 billion. EPS was $1.92.
Forward-Looking Statements
Information contained in this release, other than historical information, should be considered “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
WCI Steel cautions that there are various important factors that could cause actual events to differ materially from those indicated in the forward-looking statements; accordingly, there can be no assurance that such indicated events will occur.
Among such factors are: general economic and business conditions; demand for WCI Steel’s products; changes in liquidity, timing of completion of the acquisition, changes in, or the failure or inability to comply with, government regulation, including, without limitation, anti-trust legislation and environmental regulations; the outcome of legal matters and other risk factors.
Except as required by law, WCI Steel does not assume any responsibility to update any forward-looking statements to reflect future developments or events.
Important Limitations on Using News Releases
By their very nature, news releases are dated and time-sensitive, reflecting information that is current, or expectations that are believed to be reasonable, at the time of issuance. Reading an out-of-date news release can, therefore, be misleading and should never be relied upon as a current statement of fact or expectation. WCI Steel, Inc. undertakes no responsibility to delete, edit or update information in old news releases that may no longer reflect current facts or expectations.
WCI Steel Contacts:
ANALYSTS: Cynthia Bezik, Vice President and CFO, 330-841-8301
MEDIA: Bette Kovach, Public Affairs Manager, 330-841-8213