BlueScope Rejects Revised Takeover Bid but Stays Open to Talks

BlueScope Steel Limited[Symbol:{ "assets":{ "symbol":"BSL.AX" } }] has announced that a revised A$15 billion ($10.7 billion) takeover bid from a consortium involving SGH and United States[Country:{ "assets":{ "country":"US" } }]-based Steel Dynamics, Inc.[Symbol:{ "assets":{ "symbol":"STLD" } }] is currently insufficient to secure board approval. Despite the rejection, the Australia[Country:{ "assets":{ "country":"AU" } }]-based steel manufacturer remains open to further negotiations if the consortium presents a bid that reflects the company's fair value. The revised offer of A$34 per share was effectively valued at A$32.35 following the deduction of a A$1 special dividend and a A$0.65 interim dividend. BlueScope also noted its plan to return an additional A$1.35 per share to investors by 2026. Market response saw BlueScope shares drop by as much as 4.9% on Thursday before paring losses to trade down 2.6%, while the S&P/ASX 200 index rose 0.4%. In a letter to the consortium published on the ASX, BlueScope Chair Jane McAloon outlined the board's requirements for further engagement. She specifically highlighted the need for clarity on the valuation of the company's North American assets, which would be acquired by Steel Dynamics as part of the deal. McAloon also requested further details on the funding structure and stated that the board would not recommend the offer before the consortium completed its due diligence. > If you are able to address the matters we have raised in this letter including, importantly, increasing the value of your proposal for all BlueScope shareholders, the board is open to further engagement with you, including providing some due diligence information, McAloon stated.