BlueScope rejects new $11 billion takeover bid

Australia’s BlueScope Steel has rejected a revised $11 billion takeover bid from SGH and Steel Dynamics, but remains open to better terms, Bloomberg reports.

BlueScope said in a statement that bidders need to increase the value to shareholders if negotiations are to be taken seriously.

The revised offer does not adequately address the company’s valuation concerns.

«Therefore, the offer price is insufficient for the board of directors to recommend the deal to shareholders,» the statement said.

BlueScope also expressed concern about the onerous conditions included in the offer, which would give Steel Dynamics and SGH exclusive rights to conduct due diligence and matching rights in the event of a competing offer. Despite this, it is noted that the board of directors remains open to a deal at a price that reflects the fair value of BlueScope.

Earlier, US-based Steel Dynamics and Australian conglomerate SGH announced a «best and final» offer, raising their bid to AUD 32.35 per share (for a total value of AUD 15 billion). In January, BlueScope rejected an offer of 30 Australian dollars per share.

Steel Dynamics and SGH plan to split BlueScope’s assets. The American company is targeting the North Star steel mill in Ohio and the North American processing business, while SGH is seeking control of the Australian steel mill in Port Kembla.