Local Brazilian newspaper Valor Economico reported Monday that Japanese steelmaker Nippon Steel is looking to dramatically raise its stake in the Below Horizonte, Brazil-based flat-rolled steelmaker Usinas Siderurgica de Minas Gerais SA (Usiminas).
According to the report, Nippon is seeking to buy out Votorantim and Camargo Correa's combined 26 percent stake in Usiminas to stave off a rumored takeover by Companhia Siderurgica Nacional SA (CSN).
Media reports over the last couple weeks have indicated that CSN has offered Votorantim and Camargo US$2.8 billion for their combined stake--a 67 percent premium over current Usiminas shares. If CSN was successful in the takeover, it would become the majority shareholder in its flat-rolled steelmaking rival in Brazil.