Final offers for ThyssenKrupp AG's (TKA.XE) massive steel plants in Brazil and Alabama are well below the company's expectations as the German conglomerate enters the final stretch of a long-awaited sales process through which it hopes to end an investment that has cost it billions of euros, two people familiar with the transaction told Dow Jones Newswires Tuesday.

A deal could be announced as early as April, but will likely trigger a further write-down of about $1.3 billion for ThyssenKrupp because the bids are considerably below the current $5 billion book value of the works, these people said.

While the Brazilian steelmaker Cia. Siderurgica Nacional (CSNA3.BR) has put down a final bid of about $3.8 billion for both plants--roughly in line with a preliminary bid dating back to late last year--a joint venture of ArcelorMittal (MT) and Nippon Steel & Sumitomo Metal Corp. (5401.TO) has offered a binding bid of about $2 billion for the Alabama plant, these people say.

Since 2010, ThyssenKrupp has posted over $15 billion in losses related to its Americas operation, which encompasses the two plants. Last May, it said it was selling these to slash its mounting debt burden.

CSN and the group comprising ArcelorMittal, Nippon Steel and Sumitomo Metal are the suitors are most likely to win the tender process for the Brazil-based steel slab plant and the processing mill in Alabama, people working on the deal previously told The Wall Street Journal. An ArcelorMittal spokesperson wasn't immediately available to comment but ArcelorMittal's Chief Financial Officer Aditya Mittal said March 15 that the company is still interested in ThyssenKrupp's Alabama plant and this year issued new shares and a convertible bond to help finance a deal.

Brazilian state development bank BNDES could offer up to 4 billion reais ($2.01 billion) in financing to support CSN's bid for ThyssenKrupp steel operations in the Americas, Brazilian newspaper Valor Economico reported last week, citing sources. Spokespeople for CSN and BNDES declined to comment.

The level of bids indicates that the German industrial conglomerate faces a fresh round of substantial impairments on its Steel Americas unit. A sale well below book value could also trigger the need for a capital increase for the highly indebted company, bankers said. Earlier Tuesday, German daily newspaper Handelsblatt said the company is considering a capital increase of more than 1 billion euros ($1.29 billion).

Analyst Rochus Brauneiser from Kepler Capital Markets said ThyssenKrupp's biggest concern is a weak equity cushion. Thyssen at the end of December posted an equity ratio, which it defines as total equity to balance sheet, of 11.4%. Potential further asset impairments in connection with the Steel Americas sale may further weaken the company's equity, he said.

ThyssenKrupp in December said it had to write down the value of the two overseas steel plants by EUR3.6 billion in its fiscal fourth quarter ending Sept. 30. The impairment charges were the main reason for a hefty EUR4.7 billion net loss in fiscal 2012, which in turn prompted ThyssenKrupp to shore up a depleted balance sheet by withholding its dividend for the first time since the merger between Thyssen and Krupp about 13 years ago.

Other suitors for the unit includes Argentina's Ternium SA (TX), which placed a relatively low offer for ThyssenKrupp's 73% stake in the Brazilian plant, according to two people familiar with the deal, and U.S.-based NuCor Corp. (NUE), which submitted a less attractive offer for the Alabama site. The remaining suitors are Japan's JFE Steel Corp. and U.S. Steel Corp., which are both eyeing the Alabama plant. A spokesman for U.S. Steel declined to comment, officials from NuCor and Ternium didn't immediately respond when approached by Dow Jones Newswires, while Nippon Steel and JFE couldn't immediately be reached for comment.

A spokesman for ThyssenKrupp declined to comment on the information and said the group is continuing to consider both the sale of the two plants together as a unit or separately to different investors.

-- Jan Hromadko, Hendrik Varnholt and Sarah Sloat in Frankfurt, Alex MacDonald in London, Matthew Day in Pittsburgh and Rogerio Jelmayer in Sao Paulo contributed to the report.

Write to Eyk Henning at eyk.henning@wsj.com

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