Business
Dofasco announces revised Arcelor offer at $71 per share
Dofasco announces revised Arcelor offer at $71 per share.
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[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Jan. 16 /CNW/ - Dofasco Inc.'s Board of Directors announced\ntoday that it has received an unsolicited proposal from Arcelor S.A. to amend\nArcelor's C$63 offer of December 30, 2005, to acquire all of Dofasco's\noutstanding common shares at an increased offer price of C$71 per common\nshare, and to amend the conditions of the outstanding Arcelor offer to be\nsubstantially the same as those of the ThyssenKrupp AG offer announced\nJanuary 14, 2006. Arcelor's proposal is subject to Dofasco and Arcelor\nentering into a mutually acceptable support agreement, the terms of which have\nbeen negotiated and are based on the support agreement entered into by Dofasco\nand ThyssenKrupp in connection with ThyssenKrupp's offer.\nDofasco's Board of Directors has determined that the Arcelor proposal\nconstitutes a Superior Proposal for the purposes of the ThyssenKrupp Support\nAgreement. Under the terms of that agreement, ThyssenKrupp has a right to\nmatch any offer made by another bidder before Dofasco can enter into an\nagreement with a competing bidder. Accordingly, Dofasco has provided a copy of\nthe draft support agreement to ThyssenKrupp and has triggered ThyssenKrupp's\nright to match. ThyssenKrupp has until January 23, 2006 to exercise that\nright. In the event ThyssenKrupp does not exercise its right to match,\nThyssenKrupp will likely be entitled to a fee of $215 million from Dofasco.\nThe proposed Arcelor C$71 amended offer represents a 61% premium over\nDofasco's closing share price on November 22, 2005, the day prior to the\nannouncement by Arcelor of its intention to make a C$56 per share unsolicited\noffer for Dofasco.\n\nDofasco is a leading North American steel solutions provider. Product\nlines include hot rolled, cold rolled, galvanized, Extragal(TM), Galvalume(TM)\nand tinplate flat rolled steels, as well as tubular products, laser-welded\nblanks and Zyplex(TM), a proprietary laminate. Dofasco's wide range of steel\nproducts is sold to customers in the automotive, construction, energy,\nmanufacturing, pipe and tube, appliance, packaging and steel distribution\nindustries.\n\nThis News Release contains forward-looking information with respect to\nDofasco's operations and future financial results. Actual results may differ\nfrom expected results for a variety of reasons including the factors discussed\ni...