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| ThyssenKrupp Gives Up Submitting Revised Price For Taking Over Dofasco |
| = Matching Arcelor's offer of C$71/share now waived |
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As regards the single combat between Arcelor and ThyssenKrupp over the acquisition of Canadian integrated steel company, Dofasco Inc., ThyssenKrupp's comments with respect to Arcelor's January 16 offer of C$71 per share had been left pending until January 23 when ThyssenKrupp announced it would not revise its offer price any more. What happened is that ThyssenKrupp indicated January 14 a revised offer at C$68 per share (second revision) but its Executive Board has concluded not to submit a higher offer to purchase Dofasco since an offer of more than C$68 per share to match Arcelor's offer of C$71 per share would go beyond the point of creating economic value. Vying for acquiring Dofasco, ThyssenKrupp raised its takeover bid price from C$63 to C$68 per share on the 14th, while Arcelor boosted its previous offer price of C$63 to C$71 per share on the 16th, resulting in ThyssenKrupp giving up exercising its "right to match". ThyssenKrupp's offer to purchase Dofasco's shares at C$68 per share will expire on January 26, 2006. Then, if the transaction fails to come about, the Company will receive a break fee of C$215 million. ThyssenKrupp will systematically implement the global growth strategy of its Steel segment. The first step is the resolved construction of a 4.4-Mt/a slab plant at Itaguai (former Sepetiba) in Brazil. When presenting the plans to build a slab plant in Brazil, ThyssenKrupp announced that part of the capacity would be used as starting material for realizing its strategy in North America that envisages three alternative options: (1) acquisition of Dofasco for taking up steel sheet production, (2) construction of a new mill, or (3) securing production base(s) through alliance arrangements. In consequence of its giving up option (1) above, ThyssenKrupp will now further pursue other two alternatives. In the meantime, Arcelor has entered into an irrevocable agreement with Dofasco to acquire all of Dofasco's outstanding common shares at an offer price of C$71 per common share. Arcelor's offer is to expire on February 8, 2006. |
| last modified : Mon 30 Jan, 2006 [11:36] |
