BLACKSTONE GROUP LP CVC [CVC.UL], Blackstone (>> Blackstone Group LP) and Access Industries have put in non-binding offers for the company, which is owned by buyout group Triton, the people said.
One of the people said that the offers value Befesa at about 1.3-1.4 billion euros (1.14-1.23 billion pounds) including debt.
Triton's sell side advisers Citi and Goldman Sachs are supplying a pre-arranged staple financing package of 1 billion euros or 5.75 times Befesa's earnings before interest, tax, depreciation and amortisation, the sources said.
Other banks are working on financing packages of 6-6.5 times EBITDA of 150 million euros.
Separately, Triton is weighing the possibility of an IPO and Befesa may send out an intention to float as early as next week if Triton deems that option more profitable, the sources said.
Triton and the bidders declined to comment.
Befesa - which is headquartered in Luxembourg and was listed until it was bought by Spain's Abengoa in 2000 - specialises in recycling steel dust from the steel and galvanizing industry and salt slags from the aluminium industry.
Abengoa (>> Abengoa) sold the company to Triton in 2013 for 850 million in cash, or 1.1 billion euros including debt.
(Additional reporting by Alexander Huebner Editing by Jeremy Gaunt)
By Arno Schuetze and Claire Ruckin
