(Updates with CFO’s comments in second paragraph.)
June 28 (Bloomberg) -- Usinas Siderurgicas de Minas Gerais SA Chief Financial Officer Ronald Seckelmann said rival steelmaker Cia. Siderurgica Nacional SA continues to buy its stock after reaching a 10 percent stake. The shares gained.
“They continue buying slowly,” Seckelmann said today in an interview in London, where he was meeting investors. “They have slightly more than 10 percent of the ordinary shares. They’ve bought a few preferred shares in the past month too.”
CSN, based in Sao Paulo, has been buying shares of its bigger rival since at least January and attained a 10.01 percent stake on April 20, according to a regulatory filing. In January, CSN said it may increase its stake in Usiminas to a level that could alter the rival’s management or control structure.
Usiminas’s common shares rose as much as 1.6 reais, or 7.1 percent, to 24 reais after Seckelmann’s comments and were trading at 23.87 reais at 3:10 p.m. New York time. The preferred stock rose 1.6 percent to 13.19 reais. CSN rose 1.7 percent to 18.92 reais.
CSN bought both types of Belo Horizonte, Brazil-based Usiminas’s stock in the past month and hasn’t yet reached 11 percent of its common shares, according to Seckelmann.
--Editors: Dale Crofts, Jessica Brice
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