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Florida Steel Officials Weigh Leveraged Buyout

July 09, 1988|Associated Press

TAMPA, Fla. — Florida Steel Corp. said its top executives are considering making an offer to take the company private in a leveraged buyout that would be worth about $270 million or more.

The company said it had been advised that senior managers were considering making an offer that would give shareholders cash and securities "with terms designed to have an aggregate value approximately in the mid-to-high forties per share." The company has about 6 million shares outstanding.

But the statement said, "There can be no assurance that any proposal will be made or, if made, will be accepted," and the company added that its board "has not determined to sell the company."

In a leveraged buyout, those making the acquisition usually borrow heavily against the target company's profits or assets.

Alfred Gres, Florida Steel vice president and chief financial officer, pointed out in an interview that an offer at $45 a share would make the value of the deal about $270 million.

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