Bloomberg News

Barclays ‘Highly Skeptical’ of Ternium-Usiminas Deal

November 17, 2011

(Corrects to show Barclays has an "overweight" rating on Ternium and an "underweight" rating on Usiminas in third paragraph.)

Nov. 17 (Bloomberg) -- Barclays Capital Plc is “highly skeptical” about a potential deal between Ternium SA and Usinas Siderurgicas de Minas Gerais SA, analysts Leonardo Correa, Pedro Grimaldi and Luiz Fornari wrote in a note to investors dated yesterday.

A price tag of 40 reais ($22.60) per Usiminas share would be “very expensive,” wrote the analysts, after Sao Paulo-based magazine Exame reported yesterday that Ternium offered such terms to buy a 26 voting stake of Usiminas from Camargo Correa SA and Grupo Votorantim. Barclays sees “limited strategic benefits for the companies” from a potential deal, they added.

Barclays has an “Overweight” rating on Ternium and an "Underweight" rating on Usiminas, according to the note.


To contact the reporter on this story: Karen Eeuwens in London at

To contact the editor responsible for this story: Chris Peterson at

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