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Vedanta, JSW considering Rs 48,000 joint bid for Essar Steel

PW Bureau

The bid, made on the grounds of value maximisation, is expected in the range of Rs 45,000-48,000 crore, with ArcelorMittal already making a bid of Rs 42,000 crore

New Delhi: In an attempt to fend off the world’s biggest steelmaker, ArcelorMittal, Vedanta Ltd and JSW Steel Ltd are considering making a joint bid for Essar Steel India Ltd. The companies could make a bid together, or individually, next week, said sources. Vedanta did not comment on the market speculation, as the steelmaker did not make a statement.

Companies try to match up to ArcelorMittal bid

The bid, made on the grounds of value maximisation, is expected in the range of Rs 45,000-48,000 crore. Arcelor’s bid is for Rs 42,000 crore. The companies were considering if the bid should be made by JSW Steel or Vedanta, sources added.

While Vedanta submitted an expression of interest for Essar, JSW Steel had not done so and was made to partner Numetal as a step-down subsidiary in the second round of bidding, where both Vedanta and JSW Steel were aspirants for Essar Steel.

Numetal and JSW Steel exited the bidding war following the Supreme Court’s order that directed ArcelorMittal and Numetal to clear dues on the account of the defaulting firms that they were associated with. Even if either of the companies puts in a bid, it would be jointly funded sources said. JSW Group Chairman Sajjan Jindal had last month suggested that the company still has an interest in Essar.

“It’s not done and dusted. It’s not over till it’s over,” he had said.

He had also backed Ruias’ settlement offer and said, “They (Ruias) should be given a chance. It is their company.”