Canadian steelmaker Algoma Steel Inc. has announced that it may be acquired by
Germany's second-largest steelmaker, Salzgitter AG. Algoma confirmed Thursday that it is in the preliminary stage of negotiations with Salzgitter. The northern Ontario-based company said that there is no guarantee that a transaction will be completed, but if a deal is reached, the price for its shares will likely be below the price at which they were most recently traded on the Toronto Stock Exchange. Shares of the company jumped as much as 30 percent Thursday morning to CA$55.18 (US$47.47) after Algoma announced Wednesday it was in talks to be acquired by an unnamed company. Algoma Steel Inc. is an integrated steel producer based in Sault Ste. Marie, Ontario. The company manufactures and sells primarily flat rolled steel products, including hot and cold rolled sheet and
plate.