Gerdau To Take Over Ameristeel Unit for $1.6B

Law360, New York (June 3, 2010, 3:42 PM EDT) -- Brazilian steel giant Gerdau SA has offered to pay about $1.6 billion to buy all the shares of Gerdau Ameristeel Corp. that it does not already own in order to save on administrative and borrowing expenses.

Gerdau Ameristeel's board of directors has already unanimously decided to back the proposal at the $11 per share Gerdau offered for the minority stake, the companies said Wednesday.

Gerdau's offer represents a 53.4 percent premium over Gerdau Ameristeel's closing price Tuesday and a nearly 46 percent premium over the company's...
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