Brazil’s CSN scouting for new acquisitions

Thursday, 12 May 2005 20:14:18 (GMT+3)   |  
       

Brazil’s CSN scouting for new acquisitions

Brazil’s Companhia Siderugica Nacional (CSN) has expressed interest in buying “mid-sized” steel companies in Europe. Though the Brazilian steelmaker has no plans to make any immediate purchases, it has been eyeing companies like Voestalpine in Austria, Riva Group in Italy, and Germany’s Salzgitter. CSN has made no indication as to when it would make any acquisitions, only that it would wait for the “right opportunity”. In related news, Wall Street investment firm Bear Stearns upgraded CSN’s stock recommendation from “underperform” to “peer perform”. Bear Stearns indicated that the CSN is “more defensive” than most global steelmakers during this uncertain period for steel equities, adding that it still sees better opportunities for investors wanting to purchase steel stocks. CSN’s first quarter profit more than doubled on rising steel prices and increased demand from Brazilian customers in the automobile, construction, and beverage industries.