Essar Steel Algoma's Parent Company Dissapointed with Asset Purchase Agreement

   The parent company of Essar Steel Algoma issued a statement yesterday expressing disappointment with an asset purchase agreement the local steelmaker has entered into with a consortium led by New York based private equity firm KPS Capital partners.  In Essar Gobal’s view, there has not been adequate opportunity for other potential bidders to participate throughout the process to help ensure the best result for Algoma’s stakeholders.  The statement goes on to say that given the confidentiality of the CCAA restructuring process, if can neither confirm or deny its involvement in the bidding process.  Essar Global sees long-term value in their infrastructure assets Port of Algoma and Essar Power Canada Limited.  Reports earlier this week indicated that KPS Capital Partners has plans to merge Essar Steel Algoma with US Steel Canada formerly Stelco.