British Steel PLC - Re Proposed Merger

RNS No 5801x
BRITISH STEEL PLC
16 July 1999
 

Not for release, publication or distribution in or into the United States,
Canada or Norway.  The proposed public offer for Hoogovens ordinary shares
(and depositary receipts therefor) will not be made in or into the United
States, Canada or Norway.

                        British Steel plc

          Proposed merger of British Steel and Hoogovens

The boards of British Steel plc ("British Steel") and Koninklijke Hoogovens
N.V. ("Hoogovens") announce that on 15 July 1999 the European Commission
issued decisions under Article 6(1)(b) of Council Regulation (EEC) 4064/89 and
Article 66(2) of the Treaty of Paris declaring the proposed merger to be
compatible with the common market and granting authorisation for the proposed
merger.  Confirmation has also been received from the US Federal Trade
Commission that an early termination of the waiting period under the United
States Hart-Scott-Rodino Antitrust Improvements Act of 1976 has been granted
in relation to the proposed merger.


Enquiries:

British Steel                                                 0171 314 5502
Mike Hitchcock                                                 


This announcement is not an extension of the proposed public offer for
Hoogovens ordinary shares (and depositary receipts therefor), directly or
indirectly, in or into the United States, and it will not be permitted to be
accepted in or from the United States.  Accordingly, no public offer will be
made for Hoogovens's American Depositary Shares.

This press release has been issued by British Steel and Hoogovens.  It has
been approved by Credit Suisse First Boston (Europe) Limited ("Credit Suisse
First Boston") and Warburg Dillon Read, a division of UBS AG ("Warburg Dillon
Read") for the purposes of section 57 of the Financial Services Act 1986.

Credit Suisse First Boston, which is regulated in the United Kingdom by The
Securities and Futures Authority Limited, is acting for British Steel and
no-one else in connection with the proposed merger and will not be responsible
to anyone other than British Steel for providing the protections afforded to
customers of Credit Suisse First Boston, nor for providing advice in relation
to the proposed merger.

Warburg Dillon Read, which is regulated in the United Kingdom by The
Securities and Futures Authority Limited, is acting for Hoogovens and no-one
else in connection with the proposed merger and will not be responsible to
anyone other than Hoogovens for providing the protections afforded to
customers of Warburg Dillon Read, nor for providing advice in relation to the
proposed merger.

END


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