Voto Heard Entering Cimpor Fray

Brazil’s Grupo Votorantim, which until now has been a bystander in the bidding for Portugal’s Cimpor, which includes a tender offer by CSN and a merger proposal from Camargo Correa, is heard to be seeking to acquire Lafarge’s 17% stake in Cimpor. The move was reported in the local Portuguese press and bankers away from the process confirm Voto is indeed targeting the stake. Camargo is also rumored to be preparing a new proposal to remain in the running for Cimpor after it withdrew its original merger offer late last week, citing technical and procedural reasons. Senior executives at all 3 bidders were heard in Portugal negotiating a deal with investors over the weekend. Voto’s move appears to be designed to thwart CSN’s outright takeover of Cimpor, rather than to challenge it in a bidding war for control. Cimpor shareholders include Lafarge (17%), Teixeira Duarte (23%), Manoel Fino (11%), Bipadosa (7%) and Cinvest (4%). Itau analysts say CSN is the most likely winner in the bidding. They favor CSN’s bid because it is the only live offer that reaches out to all shareholders; its Brazil-based cement business does not conflict with Cimpor’s and CSN is the most financially sound bidder of the 3 Brazilians. CSN has recently filed a BRL10bn short-term note program whose proceeds could eventually be used for the acquisition. However, with the likelihood of further bids, the price of Cimpor is seen rising beyond the EUR5.75 a share which CSN is offering and above the EUR6.27 it closed at Tuesday.