FORM 6 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
As of January 2, 2004
TENARIS, S.A.
(Translation of Registrant's name into English)
TENARIS, S.A.
13, rue Beaumont
L-1219 Luxembourg
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- .
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The attached material is being furnished to the Securities and Exchange
Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange
Act of 1934, as amended. This report contains Tenaris's press release announcing
its Settlement of Lawsuit with BHP Billiton Consortium
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: January 2, 2004
Tenaris, S.A.
By: /s/ Cecilia Bilesio
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Cecilia Bilesio
Corporate Secretary
Tenaris Announces Settlement of Lawsuit with BHP Billiton Consortium
LUXEMBOURG--(BUSINESS WIRE)--Dec. 30, 2003--Tenaris S.A. (NYSE:TS)
(Buenos Aires:TS) (BMV:TS) (MTA Italy:TEN) announced today that a full
and final settlement has been reached in connection with the lawsuit
brought against its Italian subsidiary, Dalmine SpA, by the consortium
led by BHP Billiton Petroleum Ltd. (the "Consortium"). The lawsuit was
brought by the Consortium in 1998 in the English Courts following the
failure of an underwater pipeline built in 1994 in the Liverpool Bay.
Dalmine, at the time a subsidiary of ILVA SpA, supplied pipes which
were used by the Consortium in the construction of the pipeline. The
Consortium claimed compensation of damages in the order of UK GBP 216
million plus costs and interest as a result of leaks and defects in
the pipeline. In May 2002 the trial court issued a judgment in favor
of the Consortium, holding that Dalmine was liable for damages to the
Consortium and in February 2003 the court of appeals dismissed an
appeal in respect of this judgment, closing the dispute on the issue
of liability.
The terms of the settlement concluded today provide that a total
of UK GBP 108 million, out of which UK GBP 16.9 million has already
been paid as interim damages and costs, shall be paid to the
Consortium. The balance is to be paid in three equal annual
installments of UK GBP 30.4 million, with the first installment due on
January 30, 2004 and the remaining two due on December 9, 2004 and
2005, respectively. Interest will accrue on the second and third
installments at the rate of 100 basis points over Libor.
As a result of the settlement, Tenaris will record a loss, net of
its US$76.4 million provision, of approximately US$76 million post-tax
(approximately US$108 million pre-tax). Because the pipe that was the
subject of the litigation was manufactured and sold, and the tort
alleged by the Consortium took place prior to the privatization of
Dalmine in 1996, an arbitration proceeding against Fintecna SpA, an
entity owned by the Italian government and successor to the
government-owned seller, ILVA SpA, has been brought seeking to compel
Fintecna to indemnify for amounts paid or payable to the Consortium.
This arbitration proceeding is currently in progress and is expected
to be concluded in the first half of 2004. Based on legal advice,
Tenaris believes that the arbitration proceedings will be resolved in
its favor and that Fintecna will be required to reimburse a
substantial proportion of the amounts paid and payable to the
Consortium. No assurances, however, can be given that the arbitration
proceedings will, in fact, conclude in the first half of 2004 or that
Fintecna will be required to reimburse any amounts paid or payable to
the Consortium.
Tenaris is a leading global manufacturer of seamless steel pipe
products and provider of pipe handling, stocking and distribution
services to the oil and gas, energy and mechanical industries and a
leading regional supplier of welded steel pipes for gas pipelines in
South America. Domiciled in Luxembourg, it has pipe manufacturing
facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico and
Venezuela and a network of customer service centers present in over 20
countries worldwide.
CONTACT: Tenaris
Gerardo Varela, 1-888 300 5432
www.tenaris.com