Rosario Acero S. A. 1
In March 1997 , Pablo Este sat in a comfortable chair in the living room of his home in Buenos Aires, S. A. , the former Rosario Works of Giganto, downsizing the operations and workforce , searching for new customers during the six - month Giganto Acero strike at a time when sales to Giganto Acero accounted for nearly one-half the company's total sales, and arguing with local bankers over the value of receivables due from customers facing possible bankruptcy.
Now , after six profitable quarters , the company was preparing to issue it's first long term securities since it's in 1993 the concern Pablo Este Faced in March 1997 was the type of capital to acquire. The company ' s size - revenues were below $ 35 million ( pesos )2 - definitely limited options, but Sr. Este, as majority shareholder and chairman of Rosario Acero S. A. 's board of directors, wanted to consider all the options available at the time.
He had engaged Raul Martinez, an independent financial consultant, to investigate a private placement of eight- year senior notes with warrants. Sr. Martinez' s initial report stated that Rosario Acero S. A. Could raise it's required $ 7.5 million at initial public offering of time to sell the entire company to another firm.