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BlueScope Steel Rejects $8.8 Billion Takeover Bid, Citing Severe Undervaluation of the Company
Bossard Steel Limited of Australia has rejected an $8.8 billion takeover bid from U.S. steelmaker Steel Dynamics and Australian conglomerate SGH. In a statement released on Wednesday, the company’s board said the offer “significantly” undervalued Bossard.The Australian company said the offer failed to adequately recognize the value of BlueScope’s assets and was made at a time when steel margins in Asia were low. BlueScope Chair Jane McAloon said, “Let me be clear—this proposal attempts to take BlueScope from shareholders at a bargain price.It severely undervalues our world-class assets, growth momentum, and future, and the board will not allow this to happen.” The rejection is a setback for Steel Dynamics’ ambitions. The company had previously made several bids for BlueScope’s North American operations, aiming to benefit from the high tariffs imposed by the Donald Trump government to protect U.S. producers.
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