Fletcher Steel presses on with takeover bid

Fletcher Challenge Steel is refusing to abandon its pursuit of Steel and Tube Holdings.

It has applied again to the Commerce Commission for approval to take over up to 100 per cent of Steel and Tube.

The commission rejected Fletcher's initial application this month because it was not satisfied that the company would not become dominant in two market sectors - merchant steel and steel plate processing and distribution.

A spokesman for Fletcher Challenge, Barry Akers, said the company had added new information to its second application covering market share issues, but would not reveal details.

"It contains new information on the two markets the commission had concerns about. We are keen to have the flexibility to enable us to decide to go on with Steel and Tube."

Mr Akers said Fletcher was encouraged by the stance of the deputy commissioner, Mark Berry, on its application. Outnumbered by two other commissioners, Mr Berry voted to approve the Steel and Tube takeover because he believed no dominance was likely to result from the acquisition.

"That was a different point of view and that's encouraging," said Mr Akers.

The Australian company Broken Hill Proprietary is searching for a buyer for its 50 per cent shareholding in Steel and Tube, a Wellington-based company valued at $150 million which has a 40 per cent share of the steel market.

The commission will announce its decision on Fletcher's new application on December 8.