Is Essar Steel Algoma bidding for U.S. Steel Canada?

It seems unlikely, but New York-based Bloomberg news service is reporting that a Canadian steelmaker under creditor protection is preparing a bid to buy another Canadian steelmaker under creditor protection.

Bloomberg's Mike Deveau is reporting that Essar Steel Algoma will submit a bid for the Ontario assets of U.S. Steel Canada Inc. by February 29.

Bloomberg is a major player in financial news with more than 19 million worldwide monthly desktop visitors.

Curiously, the Bloomberg article makes no reference to Essar Steel Algoma currently being involved in a sale and investment solicitation process under the Companies' Creditors Arrangement Act.

Deveau reports that he got word of Essar's interest in U.S. Steel's operations in Hamilton and Nanticoke through sources "with knowledge of the matter" "who asked not to be identified because the information is private."

Mike Da Prat, president of Steelworkers Local 2251, tells SooToday that he is aware of the Bloomberg report but has received no word about any bid for U.S. Steel Canada and had no idea where the information originated.

Da Prat said he couldn't rule out the possibility that Essar might be preparing a bid, but if the news is true, Essar isn't sharing it with Local 2251.

Quoting the same anonymous source, the Bloomberg article says another company, ERP Compliant Fuels, has also submitted a bid for U.S. Steel Canada.