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(AMM) Schnitzer said takeover target of US steelmakers

May 27, 2010 - 00:02 GMT Location: PITTSBURGH

KEYWORDS: Schnitzer Steel Industries

Schnitzer Steel Industries Inc. is in play and could be sold to a domestic mill, sources say.

Rumors of a takeover started circulating about six weeks ago and sources indicated this week that it is just a matter of time before Schnitzer is purchased.

"A major U.S. mill is looking to buy it," said a source who indicated that recent activity at Schnitzer's offices had made the intent obvious. "When you parade people through, people working recognize that something is going on, that something is out of kilter."

Potential suitors are interested in buying the Portland, Ore.-based company's scrap assets and "may get a steel mill thrown in as part of the deal," the source said, referring to the company's Cascade Steel Rolling Mills Inc., McMinnville, Ore.

Schnitzer has not put up a "For Sale" sign, but instead is being courted, according to sources.

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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