Algoma Steel considers acquiring Stelco

By Jeff Pines

Washington, Dec. 21 - Algoma Steel Inc. is considering acquiring bankrupt Canadian steelmaker Stelco Inc., Algoma said.

"There are a number of significant issues that need to be addressed with Stelco stakeholders for an acquisition to be successful. Algoma will only proceed with a transaction if these issues can be satisfactorily resolved and our shareholder value enhanced," said Denis Turcotte, Algoma's president and chief executive officer, in a news release.

Algoma Steel Inc. is an integrated steel producer based in Sault Ste. Marie, Ont.

In November, OAO Severstal, a Russian industrial group, offered to buy Stelco. Last year Severstal bought Rouge Steel in Michigan.

Stelco filed for protection under the Companies' Creditors Arrangement Act on Jan. 29, 2004. Its case number is 04-54306.

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