Amaranth cuts Stelco stake by 9.92 million shares

New York, Feb. 9 - Amaranth LLC said it has cut its stake in Stelco Inc. by 9.916 million common shares to 10.084 million common shares between Jan. 30 and Feb. 9.

The Greenwich, Conn., fund manager said it either sold the shares on the Toronto Stock Exchange or used them to cover short sales. Amaranth said it disposed of the shares "to realize in part on its investments in Stelco."

As a result of the disposals, Amaranth's stake is now less than 10%.

Amaranth previously said it bought 20 million common shares of Stelco on Jan. 30 at a price of C$0.80 per share, just one day after the steelmaker filed for bankruptcy.

It also said it owns convertible debentures issued by Stelco which would convert into 22,222 common shares.

As of Jan. 30, if the convertibles were converted, Amaranth would own 19.6% of Stelco's outstanding common shares.

Amaranth said it owns the securities for investment purposes, not to influence the control or direction of Stelco. Its investment in Stelco is managed by Amaranth Advisors (Canada) ULC, based in Toronto.

Stelco filed for protection under the Canadian Companies' Creditors Arrangement Act on Jan. 29.

Hamilton, Ont.-based Stelco is Canada's largest steel company.

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