Argentina Unlikely to Sell Siderar Stake

The Argentine government is unlikely to sell its 26% stake in Siderar, according to two sector analysts. Local press had reported that Techint, which controls Siderar, has offered the Argentine government $700m for the stake, an offer the government is reported to have rejected. “The government will never sell,” says one Sao Paulo-based equity analyst. “The government is not looking at the economic part of this.” A US-based equity analyst says he is unsurprised that Techint would want to attempt to buy out the Argentine government. “The government has been more aggressive lately” in exerting influence on companies in which it holds a stake, he says. The Fernandez administration is unlikely to give up that stake in the future, he says. “I don’t think it’s about price. It’s about control.” The Sao Paulo-based analyst says the stake allows the Fernandez administration to attempt to influence steel pricing and the rate of inflation.