Usinas Siderurgicas de Minas Gerais SA, the second-largest Brazilian steelmaker, fell the most in four months after the securities regulator ruled Techint Group isn’t obligated to offer to buy out minority shareholders.
Voting shares of Usiminas retreated 6.8 percent to 18.74 reais at the close of trading in Sao Paulo. The benchmark Bovespa index dropped 1.4 percent.
Techint Group’s purchase of 27.7 percent of the voting capital in the Brazilian company at the end of last year for 20 reais a share doesn’t constitute a change in control so the offer doesn’t need to be made to minority shareholders, the regulator said yesterday. Under Brazilian rules, minority holders of voting shares would receive an offer of at least 80 percent of the price paid to controlling shareholders if a company is acquired.
“These shares went up this year, gaining more than the Bovespa, in part because of the expectations there could be a decision in favor of the minority holders,” Pedro Galdi, an analyst at SLW Corretora in Sao Paulo, said by phone. “We don’t see room for an additional rise.”
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