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Tata Steel UK's new rescue hope

Sale of long product division to Greybull Capital can plug annual bleeding of estimated $160 million

Birds fly above part of the TATA steel plant in Scunthorpe northern England
Birds fly above part of the TATA steel plant in Scunthorpe northern England

Greybull Capital, the Britain-based investment company which plans to buy Tata Steel UK’s long product business in Europe, is known for ‘rescue deals’. Which is what Tata Steel needs for this segment, which now has zero book value and an estimated loss of $160 million (Rs 1,050 crore) a year. In August, billionaire Gary Klesch’s company, Klesch & Co, pulled out from negotiations to buy these assets. Klesch is known as a ‘vulture capitalist’, who buys companies at scrap value. In 2012, for instance, his company bought the vinyl business division of ...