Canadian Mining Journal

News

TAKEOVER NEWS Rumour Fuels Speculation about Noranda

A tidal wave of rumours indicated that the Brazilian company CVRD may have made an offer of several billion dollars...


A tidal wave of rumours indicated that the Brazilian company CVRD may have made an offer of several billion dollars for NORANDA.

According to the press, this new purchase might be one of CVRD’s steps towards becoming a firm that operates in a wider international context. It is already active in Argentina, Brazil, Chile, Peru, Venezuela, China, Mongolia and Mozambique. CVRD, whose shares trade at international stock exchanges in New York, Madrid and Sao Pablo, is the world’s main producer and exporter of iron. Mining, shipping, the paper industry, iron and steel industry, and electric power generation are some of the company’s core businesses.

Noranda, on the other hand, is a Canadian firm with 15,000 employees operating in 17 different countries and an annual turnover of US$4.8 billion. Rumour has it that the Canadian company was offered to CVRD by the Canadian holding company Brascan, owner of 43% of Noranda.

Some sources from the market said that CVRD has already made an offer of over US$2 billion. Canadians, however, have turned down the offer, seeking closer to US$3 billion.

Rumours also indicate that the Stanley Morgan bank might be giving CVRD professional advice on the topic.

At the stock exchange in Sao Pablo these rumours were taken seriously. As a result, CVRD’s shares lost nearly 4% of their value at the end of the day on Tuesday, June 22.

At present, Noranda has only claimed to have many prospective buyers who would be interested in the company if it were to be sold.

Regarding news recently published in the media concerning possible acquisitions involving CVRD, the company said, "We reiterate that, at the moment, there is nothing to configure an announcement by the company," but added that "CVRD is always evaluating various business opportunities in the regular course of its business, as it has broadly informed the market."


Print this page

Related Posts



Have your say:

Your email address will not be published. Required fields are marked *

*