Companies silent on Severstal bid for U.S Steel rumors

According to reports published late last week by Russian and international sources, the Russian steel producer Severstal, together with other Russian iron ore companies, was considering a bid for U.S. Steel Corp. In response to a question posed by SteelOrbis concerning the issue, a Severstal representative stated, ’We do not comment on market rumors'. A spokesman for U.S. Steel also said that the company would not comment on any speculations about a possible takeover. Meanwhile, market players believe that the possible acquisition of U.S. Steel by Severstal may be the beginning of a greater global steel consolidation trend. Such a takeover of U.S. Steel would give Severstal more access to the US market, in which it desires to increase its presence. While both companies refuse to comment on the issue and market players speculate on the possible consequences of the takeover, U.S Steel shares continue to rise, supported by the rumor.