By Cameron French
TORONTO, Aug 31 (Reuters) - Lakeside Steel was granted intervenor status in the Canadian government's lawsuit against U.S. Steel on Monday, stoking its hopes of acquiring the former Stelco assets that were bought by U.S. Steel in 2007.
Canada is taking U.S. Steel to court to force it to comply with commitments for production and employment the company made when it acquired Stelco. The company suspended the operation earlier this year as steel demand waned, but has maintained production in the United States.
Lakeside, a venture-listed company backed by investment banker Vic Alboini, is hoping the government will compel U.S. Steel to sell off the unit, giving it a chance to bid on it.
The United Steelworkers union, which represents U.S. Steel's Canadian workers and backs Lakeside in its effort,, was also granted intervenor status on Monday. Both Lakeside and the USW would have status only in the final stage of the lawsuit, when remedies are determined.
The decisions were handed down at a federal court hearing in Toronto.
Lakeside's application was opposed by U.S. Steel, but lawyers for the Canadian government said the company's involvement was appropriate as long as it was limited only to potential remedies.
Clement has said Canada is seeking that U.S. Steel either meet its production and employment obligations or pay a fine of as much as C$10,000 ($9,000) a day.
U.S. Steel said last week it was restarting key operations at its Hamilton, Ontario, site. Its Nanticoke, Ontario, plant is also closed.
Lakeside's shares fell 4 Canadian cents to 19 Canadian cents on the TSX Venture Exchange, while U.S. Steel slid 82 cents to $43.78 in New York.
(Reporting by Cameron French; Editing by Frank McGurty) Keywords: USSTEEL LAKESIDE/CANADA (cameron.french@thomsonreuters.com; 416-941-8199: Reuters Messaging: cameron.french.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
TORONTO, Aug 31 (Reuters) - Lakeside Steel was granted intervenor status in the Canadian government's lawsuit against U.S. Steel on Monday, stoking its hopes of acquiring the former Stelco assets that were bought by U.S. Steel in 2007.
Canada is taking U.S. Steel to court to force it to comply with commitments for production and employment the company made when it acquired Stelco. The company suspended the operation earlier this year as steel demand waned, but has maintained production in the United States.
Lakeside, a venture-listed company backed by investment banker Vic Alboini, is hoping the government will compel U.S. Steel to sell off the unit, giving it a chance to bid on it.
The United Steelworkers union, which represents U.S. Steel's Canadian workers and backs Lakeside in its effort,, was also granted intervenor status on Monday. Both Lakeside and the USW would have status only in the final stage of the lawsuit, when remedies are determined.
The decisions were handed down at a federal court hearing in Toronto.
Lakeside's application was opposed by U.S. Steel, but lawyers for the Canadian government said the company's involvement was appropriate as long as it was limited only to potential remedies.
Clement has said Canada is seeking that U.S. Steel either meet its production and employment obligations or pay a fine of as much as C$10,000 ($9,000) a day.
U.S. Steel said last week it was restarting key operations at its Hamilton, Ontario, site. Its Nanticoke, Ontario, plant is also closed.
Lakeside's shares fell 4 Canadian cents to 19 Canadian cents on the TSX Venture Exchange, while U.S. Steel slid 82 cents to $43.78 in New York.
(Reporting by Cameron French; Editing by Frank McGurty) Keywords: USSTEEL LAKESIDE/CANADA (cameron.french@thomsonreuters.com; 416-941-8199: Reuters Messaging: cameron.french.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.