off-the-wire

BlueScope says revised $10.7B offer does not address valuation concerns

Kitco Media
By Reuters
Published:
Updated:
Reuters
BlueScope says revised $10.7B offer does not address valuation concerns teaser image

Australia’s BlueScope Steel said on Thursday that the A$15 billion ($10.69 billion) revised proposal from the SGH and US-based Steel Dynamics consortium does not adequately address its valuation concerns.

BlueScope’s board said it remains open to a transaction at a price that reflects “the fair value of BlueScope”, while not explicitly mentioning that it is rejecting the revised offer.

A letter outlining the board’s assessment and the conditions under which further engagement would be considered has been sent to the consortium, BlueScope said.

“The offer price is not sufficient for the board to recommend a scheme of arrangement to its shareholders,” the takeover target said, adding that there are ways to increase the value for shareholders.

SGH and Steel Dynamics did not immediately respond to Reuters‘ requests for comment.

($1 = 1.4037 Australian dollars)

(By Sneha Kumar; Editing by Alan Barona)

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