Cimpor has said a firm no to a takeover bid by Brazilian steel maker Companhia Siderurgica Nacional (CSN), calling the bid “hostile” as the offer of 5.75 euros per share undervalued the company. CSN's bid had valued Cimpor at about 3.86 billion euros ($5.56 billion).
Cimpor urged the shareholders not to sell their shares.
"The Board of Directors understands that the offer significantly undervalues the company and does not meet the best interests of shareholders," Cimpor said in a statement.
At the time of the offer in December, CSN had said it considered 5.75 euros a share a "fair price."
"The offer announced by CSN wasn't solicited by Cimpor, nor previously discussed or communicated to Cimpor," the statement by Cimpor said. "The Board of Directors considers it hostile and opportunistic, and irrelevant and disturbing to the company's activities."
CSN's offer price was 5 percent above Cimpor shares' closing price the day before the bid was launched.
Shares of Cimpor closed 1.06 percent higher at 6.500 euros on Thursday ahead of its rejection of the bid.
By: Rashmi Kalia (ARI-C NEWS)