�UK willing to take 25pc stake in rescue deal�
Steelcrisis
The government is willing to take a 25 per cent stake in any rescue of Tata Steels UK operations, it has been announced.
The business department said it was preparing to make a support package worth hundreds of millions of pounds available to potential buyers.
Business Secretary Sajid Javid said the money would be offered on commercial terms, but the government would not take any control over the business.
At least two potential buyers have shown interest in buying the business.
One option is a management buyout backed by the chief of Tatas Port Talbot factory, the UKs largest steel operation.
Steel company Liberty House, owned by Sanjeev Gupta, has also said it was interested in buying parts of the business.
In addition to taking a minority stake, the UK and Welsh government said they are also willing to consider additional grant funding support, for example to support the development of power plant infrastructure, energy efficiency and environmental protection measures, RD and training.
The government also said it was working with the pension scheme trustees of Tata Steel and British Steel to minimise any pension impact on the purchaser.
Mr Javid said last week that the government was prepared to support a credible buyer with a finance package, including loans, to help an industry that has been hit by falling prices, high energy costs and cheap Chinese imports.
Thursdays announcement followed another visit to Mumbai by Mr Javid to meet Tatas chairman Cyrus Mistry, where the minister said progress on the sales process had been made.
Tata has said that it would give the government and potential buyers time to arrange a rescue package, but that it did not want to prolong the uncertainty for customers and workers.
The Prime Ministers official spokeswoman told a media briefing that the support was being offered in order to keep the operation safe.
We would work alongside a potential buyer to make sure that the government is doing what it could to support a viable sale, she said.
If we were to take an extra stake it would be a minority one with the aim of supporting the purchaser in delivering a long-term future for the business, we are certainly not seeking to be controlling the company.
Asked if it was part-nationalisation, she replied: I am not sure we would accept the concept of part-nationalisation. We will be investing on a commercial basis. We would not see this as nationalisation. We would not be seeking to acquire a control in the business. We dont think that nationalisation is the right answer.
The steel industry welcomed the financial support package as a positive first step.
Gareth Stace, director of UK Steel, said: We have been calling for government to step up to the mark and provide this type of financial commitment and backing.
