Metal Management Studying Options

Metal Management, Inc. has retained Deutsche Bank Securities, Inc. to serve as a financial advisor to its board of directors. The decision to hire the advisers follows moves by several shareholder groups to merge, acquire or create a partnership arrangement with the Chicago-based scrap metal company.

Daniel W. Dienst, chairman of Metal Management stated, "While our decision to retain a financial advisor is important, it should not create any expectations among investors as to the likelihood that a sale will be consummated. Our company continues to produce strong cash flow and profitability, and has a long-term capital structure in place, which broadens our alternatives. Metal Management enjoys a broad footprint in the U.S. with leadership positions in major metropolitan markets, growth opportunities both domestically and internationally, and most importantly of all, 1,500 dedicated employees that we believe are the best in the industry. Against that backdrop, we look forward to working with Deutsche Bank Securities as we conduct our strategic assessment."

SEC filings over the past few months show that European Metal Recycling Ltd. has made a number of overtures to Metal Management to possibly merge their operations.

In a related issue, EMR, which had loaned Ben Jennings $10 million to purchase Metal Management stock, has, through its attorney, requested that Jennings pay back the loan. According to an SEC filing, Jennings, formerly one of the heads of Metal Management, had asked for an extension to pay back the loan. However, EMR in its filing, said it was unwilling to extend the loan for an additional period of time.