ArcelorMittal is prepared to reduceto 34% its 62% stake in the troubled former Ilva steelworks butnot to continue provide funding except for the purchase of theplants, sources close to the multinational steel manufacturersaid on Tuesday.
State investment agency Invitalia, which currently holds a 38%stake in the massive plant in Taranto now called Accaieried'Italia (ADI), "is asking that ArcelorMittal, as a minorityshareholder without any participation in management, continue tofinance ADI in future. This request is not acceptable, exceptfor participation in the purchase of the plants, for whichArcelorMittal has offered a contribution of 200 million euro",the sources said.
"Since the government has expressed the will for ArcelorMittalto exit from Acciaierie d'Italia, ArcelorMittal has alsoproposed selling its remaining shares directly to Invitalia orto another investor that is acceptable to the government," thesources continued.
"However, Invitalia is not willing to acquire the share," theyadded.
ArcelorMittal is reportedly "continuing to seek a constructivesolution" in negotiations with the government, even if Invitaliaallegedly "continues to hold its ground with respect to theproposals put forward" by the multinational steel manufacturer.
Last Thursday Business and Made in Italy Minister Adolfo Ursotold parliament the ex ILVA steelworks is in desperate need ofnew management to stay alive.
"We intend to reverse course by changing crew," Urso told theSenate.
"We are committed to rebuilding the former Ilva plant, making itcompetitive with the green technology that Italian steelworks,the leaders in Europe, are already committed to," he added.
The government has proposed taking the State's stake in thecash-strapped ADI up to 66% by injecting 320 million euro offresh capital to support the operations at the huge plant, whichgives work to around 20,000 people directly and indirectly.
In addition to its economic woes, the plant has long been doggedby troubles linked to pollution and its impact on the health oflocal people.
It has been undergoing an environmental cleanup to cut itsnoxious emissions amid high pollution-linked cancer rates in thePuglia city.
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