In a conference call with investors Tuesday, executives at German steel giant ThyssenKrupp AG indicated their preference for cash offers over shares for either of the two mills--a slab-making plant in a Brazil and flat rolled mill in Calvert, Alabama. "We have a clear preference for cash and I think that everyone has understood that message" said ThyssenKrupp's Chief Financial Officer Guido Kerkhoff during the call.
Kerkhoff did not comment on how many bidders there are for the mills, but ArcelorMittal and Brazil's CSN have been previously named as potential buyers of the facilities. While ThyssenKrupp invested $11.8 billion in the two plants, offers out of companies like ArcelorMittal and CSN are under $4 billion. The Alabama mill is currently operating at about 70 percent of its annual capacity while productivity in Brazil is lower.
Thyssen's CEO Heinrich Hiesinger said "we have always said that we would put all efforts to come to a solution in May," he said. ThyssenKrupp noted its preference to the final sale being concluded before the end of September.
