The board of Portuguese cement producer Cimpor (CPR.LS) said on Wednesday a modified offer by Brazilian steelmaker CSN (CSNA3.SA)(SID.N) to buy at least a third of Cimpor at 6.18 euros a share did not reflect the company’s fair value.
The board said it recommended to shareholders not to sell their shares in Cimpor, which is the target of stake purchases by two other Brazilian companies.
Cimpor shares had closed 1.4 percent lower at 5.80 euros in Lisbon on Wednesday before the board statement.
CSN on Friday raised its bid for Portugal’s largest cement maker from 5.75 euros but offered to buy a smaller stake rather than control of the company. Cimpor’s board had previously rejected CSN’s initial takeover bid.
"After a careful analysis of the terms of the modified offer, the administrative board still considers that it does not reflect the real value of Cimpor," a company statement said.
It also said the price offered by CSN was below the 6.5 euros a share seen in the recent deals where Brazilian conglomerate Camargo Correa bought minority stakes in Cimpor. CSN’s offer runs out on Feb. 22.
Camargo Correa’s stake, purchased in a series of transactions this month, is about 31 percent.