ArcelorMittal pulls out of race for Bhushan Power & Steel

ArcelorMittal has withdrawn from bidding for debt-ridden Bhushan Power & Steel after showing initial interest in the Indian firm, reports The Economic Times.

The steel major conveyed this decision to the creditors committee of Bhushan Power & Steel in a letter sent through their financial advisor Goldman Sachs, sources told the paper.

Tata Steel, JSW and Vedanta are now among the bidders for the debt-ridden firm. The final offers will be taken up by the 29 January deadline.

The reason for the withdrawal was not mentioned in the letter sent by Goldman Sachs. However, sources said that ArcelorMittal shortlisted certain assets but ''did not want to spread itself too thin'' by submitting offers for multiple assets.

Bankers told the paper that the Bhushan's financial offers include upfront payments, and that they will be evaluated both on quantitative and criteria. They said that the shortlisted bidders will be called for presentations and negotiations with regard to their resolution proposals.

The creditors committee has sought a report on the fair valuation of the debt-ridden firm's assets. This is because it added capacities since it went into insolvency resolution as existing credit lines were not utilised.

The assets' fair value is close to double the initial liquidation value, an estimate put together by Duff & Phelps and PricewaterhouseCoopers, the bankers pointed out.