Brazil’s CSN presses on with rejected Cimpor bid

Brazil’s CSN presses on with rejected Cimpor bid
Published: 28 January 2010

Brazilian steel maker CSN has registered its EUR3.86bn ($5.43 billion) offer for Portuguese cement maker Cimpor, starting the clock on a hostile takeover battle.

The bid, which Cimpor rejected earlier this month, was registered with Portugal’s stock market regulator late on Wednesday.

CSN now has until Feb 17. to persuade Cimpor shareholders to sell at least 50 percent plus one share in the company.

The Cimpor board of directors rejected CSN’s offer of 5.75 euros per share saying it was hostile and significantly undervalued the company earlier in January. The offer was first announced last month.

CSN has said it continues to talk with Cimpor shareholders without considering sweetening the offer.

Two other Brazilian companies are interested in Cimpor.

Votorantim conglomerate said on Tuesday it has made a "conciliatory" offer for a minority stake in Cimpor (CPR.LS) and was awaiting a decision from Cimpor shareholders on competing bids.

Construction group Camargo Correa has proposed merging its cement operations into Cimpor and buying a 15 percent to 25 percent stake, but was told by Portuguese market regulator CMVM to present a counterbid to CSN or withdraw.