Brazil's CSN To Put $5.5 Billion Cimpor Bid To Shareholders - CEO
08 Janeiro 2010 - 6:22PM
Dow Jones News
Brazilian steel company Companhia Siderurgica Nacional (SID,
CSNA3.BR) will put its $5.5 billion offer for cement company
Cimentos de Portugal SA (CPR.LB), or Cimpor, to shareholders,
despite the recommendation of the Portuguese company's board to
reject the offer, CSN's chief executive said Friday.
CSN will register a public share offer for 100% of Cimpor shares
at the Lisbon Stock Exchange next week, said Benjamin Steinbruch,
CSN's chief executive, during a conference call with
journalists.
"We believe that our offer is fair and we will continue to
defend it," he said.
CSN is offering 5.75 euros per share, an offer that Cimpor's
board described late Thursday as "opportunist, irrelevant and
disturbing to the company's operations."
However, Steinbruch argued that CSN is offering to pay nine to
10 times earnings before interest, taxes, depreciation and
amortization, or Ebitda, which is an elevated multiple in the
current global economic climate.
Press reports indicate that other companies may launch rival
bids for the cement firm.
Steinbruch said that CSN has been looking to expand its
international presence for the last three years. However, those
ambitions have been frustrated so far after shareholders rejected
bids for Corus, the European arm of Tata Steel Ltd. (500470.BY);
and the Sparrows Point steel plant in Baltimore.
He said that Cimpor represents an opportunity to diversify from
its core business of steel, while Cimpor's extensive operations in
emerging markets make the asset particularly attractive.
Cimpor shares closed 0.5% lower at EUR6.47 on the Lisbon stock
market.
CSN stocks were 2.6% higher at 57.70 Brazilian reals ($33.35),
in late afternoon trade on Brazil's Bovespa stock exchange, while
the IBovespa index was 0.3% lower.
-By Alastair Stewart, Dow Jones Newswires; 5511 3145-1479;
alastair.stewart@dowjones.com
Banco Comercial Portugues (EU:BCP)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Banco Comercial Portugues (EU:BCP)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
