The board of directors of Brazilian steelmaker Companhia Siderúrgica Nacional (CSN) approved on Friday an issue of up to R$ 10 billion ($1 = R$ 1.885) in promissory notes.
CSN said in a statement that this money will be used for the planned acquisition of Portuguese cement company Cimpor and the issue will only occur if the bid goes through on its terms.
Earlier in the day, Brazilian construction firm Camargo Corrêa withdrew its merger bid for Cimpor presented on January 13.
CSN made a €3.86 billion hostile takeover bid for Cimpor in December, corresponding to €5.75 a share.
Earlier in January Cimpor’s board rejected the bid as too low.
Camargo Corrêa then approached Cimpor with its merger proposal, and Votorantim said it was studying the possibility of buying a stake in the Portuguese firm.