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CSN hires Bradesco for Thyssen Brazil mill bid-report
September 25, 2012 / 12:36 PM / 5 years ago

CSN hires Bradesco for Thyssen Brazil mill bid-report

* CSN chief said in June a bid was being considered

* ThyssenKrupp to exit CSA after hefty overheads

SAO PAULO, Sept 25 (Reuters) - Brazilian steelmaker CSN has hired the investment banking unit of Banco Bradesco to advise on a potential bid for ThyssenKrupp’s money-losing Steel Americas unit, Valor Econômico newspaper reported on Tuesday.

According to Valor, which cited people with direct knowledge of the situation, other steel groups interested in ThyssenKrupp’s Brazilian and U.S. assets include ArcelorMittal , Ternium, Nippon Steel, Gerdau , Posco and Baosteel.

In June, CSN Chief Executive Benjamin Steinbruch said that once ThyssenKrupp made data on the Steel Americas unit available, the company “would look at it, as others will do too”. Bradesco BBI is CSN’s adviser on the process.

Capital allocation issues at CSN will remain a concern to investors, Barclays analyst Leonardo Correa said in a recent report. CSN has for years sought to grow through takeovers, sparking worries it would overpay for assets or boost debt.

At the time, Correa mentioned the potential bid for CSA, the Brazil-based venture between ThyssenKrupp and Brazil’s Vale that is up for sale after overheads eroded profitability. ThyssenKrupp owns 73 percent of CSA, with Vale owning the rest.

A spokesman for CSN said the company would not comment on the Valor report. Press officials at Bradesco and ThyssenKrupp’s Brazilian headquarters were not immediately available for comment.

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