Algoma Steel may bid for Stelco Inc

Algoma Steel may bid for Stelco Inc

Canada-based steel producer Algoma Steel Inc yesterday confirmed the rumors in the market that the steel producer is planning to bid for Canadian bankrupt steel producer Stelco Inc. The company officials stated that there are certain issues to be done for the acquisition to be successful. Moreover, Russian steel producer Severstal and US steel producer U.S Steel also plan to bid for Stelco Inc. The officials have not revealed the amount of bid they plan to offer for Stelco Inc. As previously reported by SteelOrbis, Deutsche Bank's restructuring financing package worth C$900 million was approved by the court officials, which made Deutsche Bank the largest shareholder in Stelco. However, Stelco is stated to be seeking offers superior to the German lender. The steel producer has been operating under bankruptcy protection since January 29, 2004. However, the fact that company reported profits in the second and third quarters due to the favorable market conditions has drawn attention of many investors.