Dofasco accepts ThyssenKrupp takeover bid
German steel giant ThyssenKrupp has outbid Arcelor for the acquisition of all of Dofasco's outstanding common shares. Hamilton, Ontario-based Dofasco and Dusseldorf, Germany's ThyssenKrupp announced today (November 28) they have reached an agreement for ThyssenKrupp to acquire Dofasco for €3.5 billion (US$4.1 billion), or CA$61.50 per common share, in cash. Don Pether, Dofasco President and CEO, said of the transaction, "We believe this is an exciting opportunity to unlock value for both companies and for our employees. Combining Dofasco with ThyssenKrupp's North American steel business will enhance the competitive position of the combined companies in NAFTA markets, as well as our presence in key global market segments. ThyssenKrupp's offer outdoes the hostile takeover bid from Arcelor, representing a 9.8 percent premium over Arcelor's bid of US$3.8 billion. The offer price is also 40 percent higher than Dofasco's closing share price on November 22, 2005. Both ThyssenKrupp and Dofasco specialize in the production of value-added flat rolled steel products. Hamilton, Ontario will become ThyssenKrupp's new North American headquarters for carbon steel. ThyssenKrupp estimates the acquisition will bring its annual sales to €50 billion.