UK PM David Cameron to persuade Tata to stay

Tata Steel may still hold on to its UK steelworks and their proposed sale may be put off after a personal intervention by British Prime Minister David Cameron, who is keen on averting the collapse of Britain’s steel industry ahead of the EU referendum, a media report said on Sunday.

The Sunday Times quoted sources as saying that a sale of Port Talbot in Wales, the UK’s larg-est steelworks, and steel mills owned by the Tata Group around the country, may be put off as the steel crisis prompted a series of offers from the UK government, including multi-million-pound loans and taking a 25 per cent stake in the business.

“Sources said a sale of Port Talbot, and steel mills around the country, was looking increasingly unlikely. Tata began contemplating retaining the vast south Wales site after personal intervention from David Cameron,” the daily said.

Last week, the government proposed a law change to slash the liabilities of the 14 billion pound British Steel Pension Scheme, which is underwritten by Tata and has a £700 million deficit.