PHILADELPHIA, Feb. 8 — Bethlehem Steel's board voted unanimously today to sell its mills to International Steel Group, a deal that could bring Bethlehem, the once-mighty industrial giant, out of bankruptcy and create the nation's largest steelmaker.þþBethlehem has been reviewing a $1.5 billion offer from International Steel, which is based in Cleveland, since Jan. 6. The companies reached an agreement in principle last week. Bethlehem's chief executive, Robert S. Miller Jr., said he and financial advisers agreed it was ÿthe best value achievable.ÿþþThe deal will be submitted in one or two weeks to Federal Bankruptcy Court in New York, Mr. Miller said.þþMr. Miller said the companies wanted to complete the sale early in the second quarter of this year. He said the value of the transaction would be recalculated then to reflect changes the companies negotiated.þþÿThis sale,ÿ Mr. Miller said, ÿwill provide a new beginning for our employees and our operations, which will continue without interruption during the change of ownership.ÿþþBethlehem Steel caused a stir Friday when it said it was seeking in bankruptcy court to end health and life insurance benefits for 95,000 retirees and their dependents on March 31. The United Steelworkers of America called the move ÿmorally callousÿ and union officials and other retiree representatives said they would try to negotiate a later termination date.þþMr. Miller said the end of the bankruptcy process was an appropriate time to end the benefits, which he said would have been terminated whether Bethlehem had sold its assets or been reorganized as a stand-alone company.þþÿRegrettably, expectations of lifelong benefits were made during an era when health care costs were lower and the company's financial condition was stronger,ÿ he said. þþþ
Source: NY Times
