‘Not constructive’: BlueScope’s bullish self-view rattles SGH, Steel Dynamics
BlueScope’s emphatic rejection of SGH and Steel Dynamics’ bid has hardened positions. Market watchers think this may be just the start of the takeover saga.
Was BlueScope Steel’s irate rejection of SGH and Steel Dynamics’ joint takeover bid on Wednesday evening driven by a bid to extract a higher offer, or genuine offence at what the company described as a “highly opportunistic” approach?
Whatever the motivation, the Stokes family-controlled SGH and Nasdaq-listed Steel Dynamics have been left reeling by BlueScope’s blunt rejection letter, in which chair Jane McAloon scolded the suitors for trying to buy the group “on the cheap” with an offer that “drastically undervalued” its assets.
“The tone is not constructive,” one source briefed on the matter told Capital Brief, noting that BlueScope had “not engaged with the bidders in any way” since the proposal was tabled on 12 December.
“The board’s position is that they say no to everything,” the source said. BlueScope has previously dismissed three separate bids by Steel Dynamics without disclosing them to the market.
