USA: Bid battle for Canadian steel maker hots up
Steel giant Arcelor reportedly raised its hostile bid to take over Dofasco on Friday, sweetening the offer in an attempt to outbid Germany's ThyssenKrupp for Canada's biggest steel maker.
The Associated Press (AP) said Arcelor offered CAN$63 (US$54.10) per share in an all-cash offer, better than the CAN$61.50 bid by ThyssenKrupp last month and CAN$7 better than its own earlier offer.
The news agency added that Luxembourg-based Arcelor, which wants to expand into the North American market, is making the new offer after failing to reach terms with Dofasco's management despite several friendly approaches this year.
Dofasco's board had recommended that its shareholders accept the offer from ThyssenKrupp, an acknowledgment that it preferred the German suitor, AP added.
"Expansion into North America is a key strategic objective for Arcelor. We believe that Arcelor is an excellent partner for Dofasco," Arcelor chief executive Guy Dolle said, according to the report.
Acquiring Dofasco would give Arcelor its first major foothold in North America, and the takeover would boost its global market share from 14-15% to between 17-18%, he reportedly said.
ThyssenKrupp said it would examine the new offer on the table and decide on how to proceed. A spokesman declined to tell The Associated Presswhether the company would make a counterbid.