Business
Dofasco and ThyssenKrupp announce a friendly all-cash deal
Dofasco and ThyssenKrupp announce a friendly all-cash deal.
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[{"type":"text","content":"\n\n\n\n\n- Offer price of C$61.50 per common share - total value of approximately\n C$4.8 billion ((euro) 3.5 billion)(x)\n- Dofasco's Board of Directors unanimously recommends acceptance of the\n offer\n- The acquisition is a major element of ThyssenKrupp's international\n growth strategy\n- Dofasco and Hamilton, Ontario to become ThyssenKrupp's new North\n American steel headquarters \n\nHAMILTON, ON/DUSSELDORF, Germany, Nov. 28 /CNW/ - Dofasco and\nThyssenKrupp today announced they have reached an agreement for ThyssenKrupp\nto make an offer to acquire all of Dofasco's outstanding common shares in a\nfriendly, all-cash transaction for total consideration of approximately \nC$4.8 billion ((euro) 3.5 billion), or C$61.50 per common share. Dofasco's\nBoard of Directors has resolved to unanimously recommend to Dofasco\nshareholders that they accept the offer. ThyssenKrupp currently owns no shares\nin Dofasco.\nThe offer price represents a 40% premium over Dofasco's closing share\nprice on November 22, 2005, the day prior to the announcement by Arcelor of\nits intention to make an unsolicited offer for Dofasco at C$56.00 per share.\nIt also represents a 9.8% premium over the Arcelor bid. ThyssenKrupp expects\nthe acquisition to be accretive to earnings in the first full year of the\ncombination.\nBrian MacNeill, Chair of Dofasco's Board of Directors, said, \"The\nThyssenKrupp offer recognizes the value of one of the world's most\nconsistently profitable steel producers. The significant premium being offered\nreflects the strategic value of Dofasco to ThyssenKrupp in accelerating the\ngrowth of the combined companies in North America.\"\nDr. Ekkehard D. Schulz, Chairman of the Executive Board of ThyssenKrupp\nAG, said: \"This premium offer for Dofasco reflects our belief that we will be\nideal partners and will unlock significant growth potential for both\ncompanies. ThyssenKrupp is very selective about its acquisitions. Strategic\nfit and the quality of the local employees are our priorities when considering\nan acquisition. In the case of Dofasco, we win on both counts by advancing our\nNorth American strategy and adding the exceptional management team and highly\nregarded workforce.\"\n\nExcellent strategic fit\n-----------------------\n\nDofasco and ThyssenKrupp both have a successful history of producing\nvalue-added flat ste...