Votorantim eyes Cimpor minority stake, not takeover

Votorantim eyes Cimpor minority stake, not takeover
Published: 20 January 2010

Brazilian conglomerate Votorantim said it has been in talks with Cimpor since 2008 about taking a minority stake, but is not considering a takeover bid right now.

Cimpor is the target of a hostile takeover bid from Brazilian steelmaker CSN, which last month offered to buy at least 50 per cent at 5.75 euros a share, valuing the company at EUR3.86bn.

Votorantim issued the statement in response to market regulator CMVM’s request for an explanation after a newspaper reported on Monday that Votorantim was about to join the battle for Cimpor.

"Votorantim has been maintaining direct and individual contacts with shareholders in Cimpor since 2008, having discussed possible acquisition of a minority stake that would represent less than 33 percent of the total and voting capital in Cimpor," Votorantim said in a statement.

The company said it had not taken any decision on acquiring any amount of Cimpor shares to date and "is not pondering, analysing or studying publishing any preliminary announcement of a takeover offer for Cimpor or any merger."