Photo: The Acciaierie d’Italia site in Taranto, Italy. Photographer: Donato Fasano/Getty Images
By Donato Paolo Mancini
The committee overseeing takeover talks for the former Ilva steelworks in Italy has recommended entering into exclusive negotiations with turnaround specialist Flacks Group, according to a person familiar with the matter.
The US-based private-equity firm’s promise to invest in the ailing site and protect jobs factored into the recommendation, along with prospects for increased production, said the person, who asked not to be named prior to an official announcement.
The other main contender, Bedrock Industries, has reportedly planned to cut back activity at the sprawling facility in Taranto.
A representative for Italy’s Ministry of Industry declined to comment.
The decision marks a step toward potentially saving the steelworks, formally known as Acciaierie d’Italia SpA, that’s stumped a string of Italian governments. The factory is a major employer in Italy’s impoverished south, but was placed under administration in 2013 amid an environmental probe and has since cost billions in taxpayer funds.
Il Sole 24 Ore reported earlier on the recommendation.
Michael Flacks, who leads his Miami-based private-equity firm, has offered €1 to take over the steelworks, pledging to revive the plant and add jobs. “We want to grow it,” Flacks told Bloomberg News this month.
Production in Taranto has fallen about 80% from its peak in the 2000s. Most of its 8,000 workers are on furlough.
While the committee is in charge of the talks, final say rests with the Italian government. Other contenders for the steelworks have included Baku Steel Co. and Jindal Steel Ltd.
— With assistance from Flavia Rotondi
