Why did BlueScope Steel reject the bid from Steel Dynamics and SGH?

BlueScope Steel rejected the revised bid because the board considered the offer price of A$32.35 per share to be insufficient and not adequately addressing their valuation concerns.

What is the total equity value of the revised offer for BlueScope?

The revised offer from Steel Dynamics and SGH proposed a total equity value of A$15 billion ($11 billion) at A$32.35 per share.

Is BlueScope Steel open to future takeover offers?

Yes, BlueScope Steel has stated that the board remains open to a transaction at a price that reflects the fair value of the company.

Home / Business and Economy / BlueScope Rejects Steel Dynamics' Bid, Seeks Higher Value

BlueScope Rejects Steel Dynamics' Bid, Seeks Higher Value

26 Feb

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Summary

BlueScope Steel Ltd. rejected a revised offer from Steel Dynamics and SGH.
The current offer of A$32.35 per share is considered insufficient by the board.
BlueScope remains open to a transaction at a price reflecting fair value.

BlueScope Rejects Steel Dynamics' Bid, Seeks Higher Value

BlueScope Steel Ltd. announced on Thursday that it has rejected a revised bid from Steel Dynamics Inc. and SGH Ltd. The proposed offer, valued at A$32.35 per share, represents a total equity value of A$15 billion ($11 billion). BlueScope's board stated that the revised proposal does not adequately address their valuation concerns, deeming the offer price insufficient for recommendation to shareholders.

The company, however, has expressed openness to a potential transaction at a price that accurately reflects its fair value. This latest development follows previous offers made by Steel Dynamics in January. Steel Dynamics is primarily interested in acquiring BlueScope's North American steel business, which contributes significantly to the company's earnings.