The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.
The divorce between United States Steel Corp. and U.S. Steel Canada Inc. will likely lead to new bids for the Canadian unit, sources familiar with the restructuring say.
U.S. Steel Canada has been effectively cut loose from its parent company under a transition agreement announced last week that includes a promise that the Pittsburgh-based U.S. Steel will not be a bidder if there is a second effort to sell the Canadian unit.
Potential bidders were put off during the first sales effort by a process they believed was skewed in favour of U.S. Steel, sources said. “There are people out there who want to rebid,” said one source involved in discussions about the future of U.S. Steel Canada. “Now, we have a sensible sales and restructuring process.”
The promise that U.S. Steel will not bid for the company means other purchasers don’t have to worry about a potential claim of more than $2-billion that U.S. Steel applied against the Canadian company and had been planning to use as credit in its own bid.