Brazils Cia. Siderúrgica Nacional (CSN) has filed
a lawsuit that would force a trio of its competitors to pay as
much as $2.64 billion to buy up minority shareholdings in
steelmaker Usinas Siderurgicas de Minas Gerais SA
CSNs lawsuit was filed
against Ternium SA and its Argentinian steelmaking subsidiary
Ternium Siderar, along with Confab Industrial SA, the Brazilian
subsidiary of Luxembourg-registered pipe maker Tenaris SA.
The lawsuit asks them to launch
a tender offer to all minority holders of ordinary shares in
Brazilian flat steel producer Usiminas. CSN is one of those
minority shareholders. Ternium, Ternium Siderar and Confab
acquired a combined 27.66-percent stake in Usiminas in January
CSNs lawsuit alleges that,
under applicable Brazilian laws and rules, the three acquirers
"were required to launch a tag-along tender offer to all
minority holders of Usiminas ordinary shares for a price
per share equal to 80 percent of the price per share paid in
such acquisition, or 28.8 reais," Tenaris and Ternium said.
In a Feb. 5 filing with the
Buenos Aires stock exchange, Ternium Siderar said that Ternium
and Siderar would have shares of 60.6 percent and 21.5 percent,
respectively, in the offer.
An offer for 182.6 million
shares would cost Ternium, Ternium Siderar and Confab at least
5.26 billion reais ($2.64 billion), because the lawsuit cites
the 28.8 reais price "plus interest," according to the
calculations of AMM sister publication Steel
This sum would be more than the
5.03 billion reais they paid to acquire the 27.66-percent stake
in Usiminas last year.
Both Ternium and Tenaris said
they will defend their position "vigorously." CSN didnt