RIO DE JANEIRO--Brazilian state development bank BNDES could
offer up to 4 billion reais ($2.01 billion) in financing to support
steelmaker Companhia Siderurgica Nacional's (CSNA3.BR) bid for
ThyssenKrupp AG's (TYEKY) steel operations in the Americas,
newspaper Valor Economico reported Tuesday, citing people close to
the negotiations.
CSN, as the company is known, recently submitted a $3.8 billion
bid for ThyssenKrupp's Steel Americas division, which comprises a
plant in Alabama and a 73% stake in a major Brazilian steel mill.
Global industry giant ArcelorMittal (MT) has emerged as another
leading bidder, while a number of other companies reportedly are
also interested.
BNDES's goal is to "strengthen" CSN and bring control of the
local steel mill, known as Companhia Siderurgica do Atlantico, into
Brazilian hands, Valor said Tuesday. The paper noted that CSN has
been bested by foreign companies such as ArcelorMittal and Ternium
SA (TX) in past attempts to acquire steel assets in Brazil.
BNDES has a policy of declining to comment on negotiations that
may be ongoing.
CSN's shares plunged earlier this month on the initial news of
its bid for Steel Americas, as analysts questioned the company's
ability to front the necessary cash without compromising its
balance sheet. The shares recently traded 3.5% higher at
BRL11.42.
Write to Paul Kiernan at paul.kiernan@dowjones.com
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