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Carwyn Jones: Steel management buy-out 'has not raised money' | Carwyn Jones: Steel management buy-out 'has not raised money' |
(about 3 hours later) | |
First Minister Carwyn Jones has told AMs that a proposed management buy-out of the UK operations of Tata Steel has not yet raised the necessary cash. | |
Mr Jones is flying to Mumbai on Tuesday for talks with the firm's bosses over the future of thousands of Welsh jobs. | |
Plaid Cymru's Adam Price expressed concern that Mr Jones' made the remarks "at such a delicate time". | |
Welsh ministers have since clarified the statement, and said the buy-out team offered a "credible option". | |
Tata Steel has put its UK operations up for sale and is due to decide this week which of the seven prospective bidders will go to the next stage. | Tata Steel has put its UK operations up for sale and is due to decide this week which of the seven prospective bidders will go to the next stage. |
Two bidders - Liberty House and the management buyout group Excalibur Steel - are willing to work together. | |
'Useful tie-up' | |
Speaking at First Minister's Questions on Tuesday, Mr Jones said: "I think the management buy-out option contains a lot of technical expertise but has not yet raised the money. | Speaking at First Minister's Questions on Tuesday, Mr Jones said: "I think the management buy-out option contains a lot of technical expertise but has not yet raised the money. |
"With Liberty Steel, they are a substantial business, but have not normally been involved in the heavy end of production. | "With Liberty Steel, they are a substantial business, but have not normally been involved in the heavy end of production. |
"I think that is a useful tie-up and I look forward with interest to see how that progresses. | "I think that is a useful tie-up and I look forward with interest to see how that progresses. |
"I hope tomorrow that Tata will look very carefully at the bids and will certainly consider strongly the option of the management buy-out, possibly of course linked with Liberty Steel." | "I hope tomorrow that Tata will look very carefully at the bids and will certainly consider strongly the option of the management buy-out, possibly of course linked with Liberty Steel." |
Mr Jones is expected to fly overnight to India for a meeting on Wednesday. | Mr Jones is expected to fly overnight to India for a meeting on Wednesday. |
UK Business Secretary Sajid Javid was meeting Tata bosses in Mumbai on Tuesday, with the £485m deficit in Tata Steel's pension fund high on the agenda. | UK Business Secretary Sajid Javid was meeting Tata bosses in Mumbai on Tuesday, with the £485m deficit in Tata Steel's pension fund high on the agenda. |
Potential buyers are reportedly reluctant to take responsibility for it. | Potential buyers are reportedly reluctant to take responsibility for it. |
Plaid Cymru's Adam Price said: "It is welcome that the First Minister has identified Excalibur Steel as its preferred bidder, but I am concerned that he has made these remarks at such a delicate time. Two days before the crucial meeting of the Tata board takes place in Mumbai, the First Minister should not jeopardise the reputation of investors. | |
"It is important to recognise that at this stage in a bidding process for a complex deal, most bidders will not have all monies pledged in place. It would be helpful for the First Minister to reassure us that Excalibur's situation is probably not unique." | |
Clarifying Mr Jones's remarks, a Welsh Government spokesman said: "The first minister is supportive of any bid that secures steelmaking in Wales and is travelling to Mumbai to fight for the future of Welsh steel. | |
"We have provided financial support to the MBO team and believe it offers a credible option. Details of any of the bids are strictly confidential and ultimately a matter between Tata and the bidder." | |
Excalibur said it was unable to respond to Mr Jones's comments because of the conditions that have been imposed on it in the bidding process. | |
Commenting on Twitter later, Mr Price added: "Also not convinced there is strong likelihood of Liberty/Excalibur tie-up. @fmwales needs to be better briefed if he is battling for Wales." |
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