Brazilian steelmaker Companhia Siderurgica Nacional launched a euro3.8 billion ($5.5 billion) takeover bid Friday for Portugal's largest cement company Cimpor.
Rio de Janeiro-based CSN said it is offering euro5.75 a share for Cimpor's 672 million shares, representing a 5 percent premium on Thursday's closing price.
Cimpor shares shot up 16.14 percent to close at euro6.35 -- a three-year high -- as investors priced in the possibility that the offer may be revised higher.
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CSN said in its statement the bid was part of its effort to diversify its business and move into new markets.
Cimpor has business in Brazil, Spain, Egypt, South Africa, Turkey and China.
CSN has in recent years met setbacks in its efforts to expand abroad.
In 2001, the Brazilian company bought the former Heartland Steel mill in Terre Haute, Indiana, but two years ago lost a bidding war for Britain's Corus Group PLC and also failed to acquire U.S.-based steel maker Wheeling-Pittsburgh Corp..
Cimpor's biggest shareholder is Portuguese construction company Teixeira Duarte, with almost 23 percent, according to the company Web site. French cement maker Lafarge holds just over 17 percent and Portuguese businessman Manuel Fino owns close to 11 percent. Portuguese banks Caixa Geral de Depositos and Banco Comercial Portugues each have about 10 percent.
CSN said it wants at least 50 percent of Cimpor stock plus one share.
Cimpor has until the end of next week to give its formal response to the bid. CSN has 20 days from the announcement of the offer to register it with the Lisbon Stock Exchange, which then has a week to say whether the bid is acceptable or refer it to competition authorities. The offer can stand for up to 10 weeks.
CSN says on its Web site it is Brazil's leading steelmaker, producing 5.6 million metric tons (6.17 million tons) of steel a year and employing around 16,000 people.
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