More takeover talk at Algoma Steel

Algoma Steel shares got a $2.36 goose-up yesterday from published speculation that the company is once again a takeover target.

AGA stock is trading this morning mostly in the $53.60 to $53.70 range.

There's been no announcement so far from the company, but the Globe and Mail is quoting an industry newsletter as saying that India's Jindal South West Steel is now sniffing out the Sault-based steelmaker.

The New Delhi-based Hindustan Times reported early last month that discussions were taking place between Jindal and Algoma, but Jindal Director of Finance Sheshagiri Rao indicated then his firm wasn't interested.

On March 13, while disclosing that acqusition discussions with Salzgitter AG had been terminated, Algoma Steel indicated that it had been contacted by a number of other interested parties.

"Algoma will be providing some of these parties with information about the company and entering into preliminary discussions with them," the company said in a written statement.

"There can be no assurance that any agreement will result from these discussions or that any transaction will be completed," it said.

Based on Algoma Steel's closing price yesterday of $53.89, the company's market capitalization is more than $1.7 billion, the Globe and Mail reports.