The battle lines are being drawn over the future of steel company Steel and Tube.

Construction giant Fletcher Building has made a $282 million takeover bid for the steel maker and distributor.

But it could take some time to get approval, because of Fletchers existing size and dominance.

JMI Wealth director Andrew Kelleher told Mike Hosking Steel and Tube directors are also reluctant to accept it.

"The Steel and Tube directors of the board think it undervalues the company, they have knocked it back but Fletchers say they have the support of some key shareholders."

LISTEN ABOVE AS ANDREW KELLEHER SPEAKS WITH MIKE HOSKING