Report: Severstal sets Oct. deadline for offers

Staff report


Russian steel giant OAO Severstal has set an Oct. 22 deadline for offers on three of its U.S. steel mills, including Severstal Warren, according to media reports.

The steelmaker has five potential bidders for its holdings in Warren, Sparrows Point, Md., and Wheeling, W.Va., according to the trade publication American Metal Market. Severstal has owned the facilities since 2008.

Three bidders — The Renco Group, a New York-based firm; Los Angeles-based Aurora Capital Group; and a partnership between New York’s Optima Fund Management and the Ukrainian Metinvest Holding TOV — have offered to buy all three steel mills, American Metal Market reported this week.

The Renco Group owned the former WCI Steel mill in Warren from 1988 until its 2006 bankruptcy.

American Metal Market also reported that U.S. Steel is interested in Severstal’s Wheeling facility, and Indian steelmaker Essar Steel is looking into buying the Sparrows Point mill, citing unnamed sources.

Severstal spokeswoman Marika Diamond declined to comment on the reports, adding that “the company doesn’t respond to rumors and speculation.”

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