FRANKFURT/DUESSELDORF, March 2 (Reuters) - U.S.-based
Worthington Steel ( WS ) would have a decent number of
acquisition targets to pick from if a planned $2.4 billion deal
to buy German metals trader Kloeckner & Co fell
through, the group's chief executive told Reuters.
The comments by Geoff Gilmore come less than two weeks
before the offer's deadline expires on March 12, with
Worthington obliged to secure at least 65% of Kloeckner's shares
to clinch the deal.
While Gilmore said he was "highly confident" to hit that
goal, having already secured 53% from Kloeckner's major
shareholder Swoctem and other tenders, the German firm has been
one of around 10 targets Worthington looked at.
"We felt like Kloeckner made the most sense and brought the
most synergies along with positioning us best strategically in
the current situation," Gilmore said.
"But that doesn't mean that options two, three, four, and
five aren't good options. So we would have good alternatives to
pursue in a situation where this does not come to reality," he
added.
The North American metals trading sector is currently
subject to substantial consolidation, with Ryerson
recently merging with Olympic Steel and Thyssenkrupp
looking to divest its materials trading division.