Steel analysts mixed on potential CMC sale
Nov 30, 2011 | 04:18 PM
| Sean Davidson
Tags
Carl Icahn,
Commercial Metals,
CMC,
PSC Metals,
steel,
scrap,
Nucor,
SDI
Steel Dynamics
NEW YORK — Investor Carl Icahn’s unsolicited offer to acquire Commercial Metals Co. (CMC) has divided industry analysts on whether other steel producers, such as Nucor Corp., Steel Dynamics Inc. (SDI) or Gerdau SA, will see it as an opportunity to make competing offers.
"We believe the primary (candidates to buy) CMC’s steel mills and fabrication assets would be Nucor, Steel Dynamics or Gerdau since all three are already electric-arc furnace producers with intimate knowledge of the long-products markets," said Brian Yu, an analyst at Citi Investment Research & Analysis.
Icahn already controls 9.98 percent of CMC and, if successful, likely would merge CMC’s recycling assets with his wholly owned PSC Metals Inc. but divest non-core assets. ....
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