Gerdau Ups Stake in Sipar

Brazil’s Gerdau, Latin America’s largest steel producer, is planning to up its stake in Argentinian steel entity Sipar from 43% to 84% for $40.5 million, payable over the next three years. Shares of Gerdau have risen 15% in the last two weeks on forecasts that it will supply most of the steel to repair the damage wrought by Hurricane Katrina in the US. Gerdau is the largest supplier of rolled steel in the western hemisphere.