Brazilian securities exchange commission, CVM, has denied a request from Companhia Siderurgica Nacional (CSN) to reconsider a regulator’s decision to not force Ternium to issue a public stock offering to minority shareholders. CSN is a competitor and also a minority shareholder at flats steelmaker Usiminas.
CVM had already denied a similar request by CSN late last year, but the steelmaker requested the regulator to reconsider its decision. CSN argued Ternium would have certain advantage as a shareholder when buying a controlling stock at the flats producer. Nippon Steel is also a shareholder at Usiminas.
CSN also said in its new document filing CVM did not consider at the time of its first decision the stock purchase by Ternium was made in “four stages,” which allegedly hid the group’s intent to control the company.
CVM said Ternium does not have control over Usiminas, since Nippon Steel is also a major shareholder at the flats producer.