Company is fearful of a tin monopoly

Antitrust concerns are being reviewed by federal officials.
CLEVELAND (AP) -- A company that uses aerosol cans says it fears an International Steel Group buyout of Weirton Steel Corp. would create a tin industry dynasty and drive prices higher for hair spray, canned soup, cat food and other products in tin containers.
The antitrust concern, also raised by competing bidders for Weirton Steel, is being reviewed by the Department of Justice.
If ISG wins a bankruptcy auction for Weirton today and a judge approves the sale, the Cleveland-based company would take over the nation's No. 2 producer of tin-plated steel. Only Pittsburgh-based U.S. Steel Corp. is a bigger tin maker.
U.S. Steel and ISG then would control nearly 80 percent of the domestic tin market, Weirton Steel spokesman Gregg Warren said.
There are only a handful of domestic manufacturers of tin-plated steel. The biggest are U.S. Steel, Weirton, ISG and Ohio Coatings in Yorkville, Ohio.
The prospect of combining Weirton and ISG troubles Tom Shelby, whose family owns half of Sullivan, Mo.,-based Aerofil Technologies, which then fills aerosol cans with specialty chemical products.
Expects higher prices
Shelby said his company already pays a 6 percent surcharge on tin cans, and he expects prices to rise further if ISG's purchase of Weirton goes through.
"I think there is a chance that they can become so powerful, who knows where it could end," he said. "When you have such little options, it allows the prices to get out of control. Eventually it gets to the end consumer."
ISG, which did not respond to several e-mail and phone messages, acknowledged in a filing last month with the federal Securities and Exchange Commission that the antitrust review was among the possible hurdles to approval of its $255 million offer for Weirton Steel.
The Justice Department did not comment Friday on the review, expected to be finished next week.
Warren, the Weirton Steel spokesman, said antitrust reviews in proposed sales are common.
"It's routine in nature when you have a transaction of this magnitude and products that compete with other companies," he said. "The government wants to ensure there's not a monopoly."
Federal bankruptcy Judge L. Edward Friend II in Wheeling, W.Va., said the antitrust issue could be addressed at a hearing after the auction, if necessary.
Auction showdown
Meanwhile, Weirton Steel on Friday cleared the way for an auction showdown between ISG and a group of Weirton Steel creditors who have submitted a $261 million bid.
A source close to one of the bidders for the company told The Associated Press on condition of anonymity that Weirton Steel deemed the Informal Committee of Secured Noteholders qualified to take part in the closed-door auction in Pittsburgh.
Weirton Steel will have to decide who is offering not only the highest, but also the best bid.