Severstal Dearborn a harder sell: analysts
May 12, 2014 | 07:01 PM
| Michael Cowden
CHICAGO As speculation swirls about who might buy Severstal North America Inc.s operations, some analysts questioned the wisdom of investing in U.S. steelmaking assets, given increased imports, low capacity utilization and threats from competing materials in the automotive arena.
While acknowledging that several steelmakers might be interested in Dearborn, Mich.-based Severstal NAs newer electric-arc furnace (EF) facility in Columbus, Miss., analysts suggested the list of suitors for its integrated facility in Dearborn might be much shorter.
Alexey Mordashov, chief executive officer of Moscow-based OAO Severstal, parent company of Severstal North America, seems to want to sell, according to Charles Bradford, principal of New York-based Metals Industry Advisory Group LLC.
"It seems like Mordashov wants to sell, and there are people out there who would like to buy. The question is, who has the money to do it and is this really the time to be buying steel assets," Bradford told AMM May 12.
Severstal could be fishing for $2 billion for Columbus and $1 billion for Dearborn, Bradford speculated.....
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