AK Steel Fashions Settlement With Retirees

Law360, New York (October 9, 2007, 12:00 AM EDT) -- After a year-long battle, AK Steel Holding Corp. has backed down from a fight with its retirees over health care benefits, agreeing to establish a $663 million trust rather than follow through on its promise to start charging premiums.

On Monday, the Ohio-based steel giant revealed that a rapprochement had been reached with retirees from the Middletown Works mill, an announcement that caused the company's shares to skyrocket to an all-time high.

Under the agreement, AK Steel will shift health care obligations for an estimated 4,600...
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