Harris Steel considers merger

Amid speculation that Nucor is likely to bid for Harris Steel Group Inc., shares of Harris Steel are soaring. The Toronto-based rebar and wire mesh company said Thursday that it is in talks to sell to an undisclosed buyer, though it cautioned that it cannot guarantee that a transaction will take place. Following the announcement, shares of Harris Steel rose as high as 33 percent Friday. Analysts have Nucor Corp. pegged as the most likely candidate, as the two companies already have a partnership -- In 2004, Nucor paid $21 million to acquire 50 percent stake in Harris's US rebar operations. Neither company has commented on the merger rumors. Other names besides Nucor that are being mentioned as possible suitors for Harris Steel are Brazil's Gerdau Ameristeel Corp., US-based Commercial Metals, and Ontario-based Russel Metals. Harris Steel's products include rebar for the construction industry and wire mesh for the mining industry.