According to union sources, four companies have been shortlisted for the purchase of Italian stainless steel producer Acciai Speciali Terni (AST), which is part of thyssenkrupp.

Italian steelmaker Arvedi and re-roller Marcegaglia are visiting the facility in Terni this week, while Posco and Baosteel are also said to be competing to acquire the troubled producer. Kallanish hears there is a “political will” for Terni to remain Italian, possibly with the help of some government financial support that is currently being discussed.

Arvedi and Marcegaglia preferred not to comment at this phase of negotiations. An informed source believes a partnership between the two could be an option, but other sources rule out this possibility.

In April, thyssenkrupp started the first phase of the sale, where buyers had access to some of AST’s production, sales and financial documents. This phase, which lasted two months, has been handled by JP Morgan, which oversees the entire process. Together with the Italian government, local steelmakers association Federacciai has publicly supported the sale of AST to one of the Italian companies involved.

The companies in the run for AST are now preparing a financial offer, Kallanish understands.