(AMM) Severstal eyeing sale of many North American assets

Severstal North America has put a significant portion of its North American steelmaking assets up for sale and has asked potential bidders to respond with offers by Friday, according to sources familiar with the process.

Severstal NA, the North American arm of Russian steel producer OAO Severstal, is looking to sell its steel operations in Warren, Ohio, Sparrows Point, Md., and those of the former Wheeling-Pittsburgh Steel Corp. "as a package," according to multiple sources, and has sent informational packets seeking expressions of interest to potential bidders.

"It doesn't mean that any of these companies are going to respond," said one source familiar with the process. "But (Severstal) have sent out the book to potential equity investors and financial investors and they are asking for expressions of interest by Friday."

The list of those to receive "the book"?a business prospectus?includes such steelmakers as Brazil's Companhia Siderurgica Nacional (CSN); Gerdau SA, Porto Alegre, Brazil; Ternium SA, Luxembourg; AK Steel Corp., West Chester, Ohio; and U.S. Steel Corp., Pittsburgh; as well as hedge funds Apollo Management LP, New York, and Aurora Capital Group, Los Angeles. At least...


Scott Robertson

August 11, 2010

00:22 GMT