Mr John Hritz, former AK Steel Corp president, has been nominated to be a director of a Canadian Algoma Steel Inc by New York hedge fund Paulson & Co Inc. Paulson has proposed that Mr Hritz become one of five new directors for Algoma Steel. Paulson is pushing Algoma to adopt new debt to pay a dividend of $420 million to shareholders.

AK’s board sought and got the resignations of Mr Hritz and former CEO Mr Richard Wardrop in September 2003. Since then, Mr Hritz has pursued other business interests and announced a candidacy for Ohio treasurer.

Ms Brenda Stenta, a spokeswoman for Algoma, said her company has declined the proposal, carefully steering clear of commenting on Mr Hritz.