Bidding war expected as Russian steel giant launches formal offer for Stelco

The Globe and Mail: “Russia’s largest steel maker touched off what is expected to be a bidding war for Stelco Inc. yesterday as the wave of consolidation that is reshaping the world’s steel industry began washing over Canada.

OAO Severstal, controlled by Russian tycoon Alexei Mordashov, launched a bid of considerably more than $500-million for all of Stelco, which has been operating under creditor protection since January, but generated record profit in the third quarter.

The Severstal bid came as Stelco was scheduled to examine a proposal from Deutsche Bank AG that appeared set to give the German bank control of the insolvent steel maker.”

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