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BIRMINGHAM STEEL CORPORATION
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(Name of Registrant as specified in its charter)
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[LOGO] CONTACT: ROY WINNICK
KEKST AND COMPANY
212-521-4842
BIRMINGHAM STEEL SEEKS MEETING WITH UNITED GROUP
AND WILL EXPLORE POSSIBLE SALE OF ENTIRE COMPANY
BIRMINGHAM, Ala., November 24, 1999 -- Birmingham Steel Corporation (NYSE:
BIR) today said it is taking steps to arrange meeting with the United Group
and, separately, that it will be exploring a possible sale of the entire
Company.
Commenting on the United Group's response yesterday to the Birmingham Steel
Board's November 22nd letter, which reiterated its continued willingness to
meet with representatives of the United Group to discuss issues of mutual
interest and concern, Birmingham Steel's Board said it is sending the
following letter to the United Group:
"We have reviewed the letter you sent to us yesterday. Despite its
tone and content, we continue to believe it is in the best
interests of Birmingham Steel shareholders to have a direct meeting
between the United Group and us in an effort to resolve the contest
in a way beneficial to our shareholders. We hope that the dialogue
between us can move from rhetoric to realism.
"With this in mind, we continue to be prepared to meet with a
willingness to discuss all matters, and invite you to do so. We
will contact your representative toward this end."
Separately, Birmingham Steel said that, reflecting interest expressed by
third parties in possible transactions involving the whole Company, and the
long-standing commitment of its Board of Directors to build and realize
value for all of the Company's shareholders, the Board today authorized
management and the Company's financial advisors, Credit Suisse First
Boston, to explore actively all potentially attractive strategic
alternatives, including the sale of the Company, while also continuing to
pursue the sale of its SBQ operations.
The Board believes that the strategic restructuring program that the
Company is currently implementing will succeed. However, by also pursuing
potential interest in a sale of the Company, the Board believes that the
Company's shareholders will be given another opportunity to realize value
in the near term.
The Board emphasized that it remains concerned about the potential
immediate and ongoing financial consequences associated with retention of
the SBQ division even for a relatively short time and with a change in
control of Birmingham Steel, including the potential that all of the
Company's indebtedness could become due and payable.
The Board of Directors has only one focus: to serve the best interests of
shareholders. It is in this spirit that the Board continues to be willing
to meet with the United Group and has authorized the Company's financial
advisors to explore actively all potentially attractive strategic
alternatives.
Birmingham Steel operates in the mini-mill sector of the Steel industry and
conducts operations at facilities located across the United States. The
common stock of Birmingham Steel is traded on the New York Stock Exchange
under the symbol "BIR."
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