CSN must boost Cimpor offer after gain

Cia. Siderurgica Nacional SA must increase its 3.86 billion-euro ($5.58 billion) takeover offer for Cimpor - Cimentos de Portugal SGPS SA if it wants to win control of Portugal's biggest cement maker, investors said.

The offer by CSN, as Brazil's third biggest steelmaker is known, "won't move ahead if CSN doesn't improve it," because of the subsequent rise in Cimpor's stock, said Bruno Menezes, investor at Rio de Janeiro-based Opportunity Asset Management, which holds about 1.4 percent of CSN, in an interview today.

CSN made an unsolicited offer for Cimpor at 5.75 euros a share on Dec. 18, a 5.2 percent premium to the previous day. The company wants to acquire Cimpor as global cement demand grows. Cimpor rose 7.1 cents, or 1.1 percent, to 6.50 euros in Lisbon.

"From a financing point of view CSN would have no restrictions" in raising its offer to match the current share price, said Alexandre Miguel, a Sao Paulo-based analyst with Itau Unibanco Holding SA, which also holds CSN shares.

"CSN has nearly 9 billion reais cash and has apparently obtained financing offers from various banks," Miguel said in a telephone interview today. "It's most probable they'll increase the offer with a reasonable chance of success."

From China Cement (2010-1-7)