According to people familiar with the matter, ThyssenKrupp AG has asked companies to resubmit offers for its unprofitable Americas unit after original bids were deemed too low.
The people, who asked not to be identified because talks are private, said that interested bidders must hand in new bids to the Essen based company by the deadline. ThyssenKrupp is seeking at least the USD 9 billion book value of the plants in the US and Brazil to avoid write downs.
ThyssenKrupp attracted about eight initial bids for its US and Brazilian plants at the end of September 2012, people familiar with the matter said earlier this month. POSCO, ArcelorMittal, Nippon Steel & Sumitomo Metal Corporation, JFE Holdings Inc, Nucor Corporation, US Steel Corporation, Cia Siderurgica Nacional SA and Ternium SA handed in indicative offers for one or both of the locations.
Mr Stefan Ettwig, a spokesman for ThyssenKrupp, declined to provide details or comment on the process.
European and North American steel firms are looking to cut costs and sell assets amid competition from Asian players like China's Baoshan Iron & Steel Co. Chinese Prime Minister Mr Wen Jiabao is overseeing a USD 23 billion investment in new mills to stimulate auto making and housing in the world's second largest economy, where growth has slowed this year.
ThyssenKrupp said in May 2012 that a sale of its Alabama and Rio de Janeiro state plants is among strategic options as it grappled with the rising costs.
Mr Heinrich Hiesinger CEO of ThyssenKrupp said in August 2012 that he wants to sell the unit for its book value of at least USD 9 billion.
The plants may fetch USD 3 billion to USD 5 billion. Steel Americas' adjusted loss before interest and taxes grew to EUR 778 million in the first nine months of the fiscal year ended September 30th 2012 as production costs outstripped expectations amid sluggish steel prices.
Source - Bloomberg
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