Severstal plans to bid for Vitkovice Steel

Severstal plans to bid for Vitkovice Steel

According to recent news in the market, Russian steel producer Severstal is planning to bid for Czech steel producer Vitkovice Steel (VS). As previously reported by SteelOrbis, Severstal had revealed that it was interested in VS. LNM Holdings offered $25 million for VS. Severstal has not disclosed the price of the bid it will offer yet however it is stated that Czech government found the offer of LNM too low. Hence Severstal is expected to offer accordingly. Certain Russian analysts assert that value of VS is between $200-250 million however government is not expected to insist at these levels as it wants to find an investor for the mill.