Votorantim to join Cimpor battle?

Votorantim to join Cimpor battle?
Published: 19 January 2010

A third Brazilian company, Votorantim, plans to join steelmaker CSNand construction group Camargo Correa in a fight for Cimpor, a Portuguese newspaper said on Monday.

Jornal de Negocios business newspaper said, without naming its sources, that Votorantim had hired Deutsche Bank to prepare a bid, which is likely to target a minority stake in Cimpor, and hired lawyers in Portugal to provide legal advice.

Cimpor is the target of a hostile takeover bid by CSN, which last month offered to buy at least 50 percent plus one share in Cimpor at 5.75 euros a share, valuing the company at 3.86 billion euros ($5.56 billion).

Camargo Correa Group on Sunday reiterated its interest in Cimpor and said it was pondering its options after the Portuguese stock market regulator told Camargo it had to present a counterbid to take over Cimpor or withdraw its merger offer. The offer presented by Camargo last Wednesday involved the purchase of a stake of between 15 and 25 percent in Cimpor and a merger of the two companies’ cement operations.

Jornal de Negocios said the rebuff for Camargo’s offer means Votorantim may have to modify its plans to buy a minority stake.