Birmingham Steel Corp., facing an unsolicited approach from Nucor Corp., (See Related Story) is in advanced talks with three other companies and could soon choose to merge with one of them, sources familiar with the situation said earlier this week, according to Reuters.
The Alabama-based steel company is talking to Steel Dynamics Inc., which operates mainly in Indiana, Brazilian company Gerdau SA, which owns U.S.-based Ameristeel, as well as Dallas-based Commercial Metals Co.
Discussions between Birmingham and the three companies are being driven by its lenders, led by Bank of America Corp.
According to the article, Birmingham is expected to decide on a buyer, possibly as soon as this week.
Nucor had offered $500 million in cash in February but Birmingham Steel rejected the offer as inadequate. Nucor is also considering raising its offer, the sources said.
The price, which would be higher than Nucor's offer, would cover ownership of the company and outstanding debt.
Birmingham Steel is not bankrupt but has been financially troubled and was recently delisted from the New York Stock Exchange.