Credit Suisse doubles Dofasco shares
Switzerland's second largest bank, Credit Suisse Group, has announced it has acquired 2.9 million shares of Dofasco Inc. since November 23, more than doubling its stake in the Canadian steelmaker while the bidding war between Arcelor SA and ThyssenKrupp AG rages on. The bank announced in a statement today that its total stake in Dofasco is now 4.23 million shares, a 5.5 percent stake in the company, equivalent to CA$274 million (US$235 million) at the current share price. Dofasco shares have shot up almost 50 percent since the takeover battle between Arcelor, the world's second largest steelmaker, and German steel giant, ThyssenKrupp, started last November. Arcelor started off what many have labeled as a hostile takeover by bidding CA$4.3 billion for the company on November 22. ThyssenKrupp followed suit with a bid of CA$4.8 billion on November 28. Arcelor then raised its offer to CA$4.9 billion on December 23, and ThyssenKrupp is expected to raise the bid even higher before its bidding deadline of January 10. Credit Suisse said in its statement, "The common shares were acquired for investment purposes only and not for the purpose of influencing control or direction over Dofasco."