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BlueScope Shares Steady After $13b Deal's Rejection
BlueScope's board called the $13 billion bid undervalued due to dividend exclusions and regulatory risks; North American operations generate nearly half of sales, company said.
- On Wednesday, BlueScope's board of directors unanimously refused a $13 billion unsolicited takeover proposal from SGH Limited and Steel Dynamics, saying it very significantly undervalued the company and was opportunistic, BlueScope chair Jane McAloon said.
- Earlier this week, the bidders proposed to buy all shares for $30 in cash then split the company, with SGH acquiring BlueScope and on-selling North America to Steel Dynamics, while dividends paid until settlement would be deducted, lowering the effective price.
- BlueScope's North American arm accounted for a large share of sales, generating more than 40% of revenue, operating five businesses with about 4,000 employees and owning the North Star steel mill in Ohio.
- BlueScope shares jumped more than 20% to $29.48 on Tuesday after the offer was made public; this is the fourth time Steel Dynamics approached BlueScope and analysts expected the board to reject the bid.
- Amid growing consolidation in the steel sector, the timing of the bid matters as BlueScope said earnings could rise $400 to $900 million a year from last year and the Stokes family owns 50.9%.
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14 Articles
Sydney Morning Herald+4 Reposted by 4 other sources
Higher bid for Bluescope likely after board rejects Stokes’ $13bn offer
Billionaire Kerry Stokes’ business conglomerate and its bidding partner Steel Dynamics are likely to make another bid for Bluescope, analysts predict.
·Sydney, Australia
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Coverage Details
Total News Sources14
Leaning Left4Leaning Right2Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 25%
R 25%
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