Stelco to go it alone

Stelco to go it alone

The Board of Directors for Canadian steel giant Stelco decided not to accept any of the bids for the company after more than two weeks spent reviewing the proposals. The company indicated that none of the four bids were deemed suitable for their objective to strengthen Stelco as it seeks to emerge from protection under the Companies' Creditors Arrangement Act. Stelco had been considering offers form Deutsche Bank, the Toronto-Dominion Bank's TD Securities, Russian steel maker Severstal, and a joint venture of Sherritt International and the Ontario Teachers' Pension Plan. The Stelco directors disclosed that the company would pursue new refinancing alternatives in the capital markets. The directors added that they would still proceed with the sale of several of Stelco's subsidiary businesses, in accordance with the capital raising process approved by the Ontario Superior Court of Justice.