Jan. 29 (Bloomberg) -- Cia. Siderurgica Nacional SA rose the most in three weeks after Valor Economico reported that the steelmaker may get as much as 4 billion reais ($2 billion) from Brazil’s development bank to buy assets from ThyssenKrupp AG.
Shares of CSN, as the company is also known, advanced 2.3 percent to 11.28 reais at the close in Sao Paulo, the steepest gain since Jan. 9. The benchmark Bovespa index rose 0.6 percent.
CSN would use the financing from BNDES, the state-run development bank, to buy ThyssenKrupp’s CSA steel-slabs plant in Brazil and Calvert Steel in the U.S. as soon as this quarter, Valor Economico reported, citing unidentified people close to the negotiations. The Sao Paulo-based steelmaker would hold a 60 percent stake in the companies while BNDES would have 30 percent, according to the newspaper.
“BNDES helping in the acquisition is very positive,” Karina Freitas, an analyst at brokerage Concordia SA in Sao Paulo, said in a phone interview. “The company has a high level of cash, but also a high level of debt. If it had to finance the operation by itself, leverage would increase a lot. BNDES’s joining would mitigate some of that pressure.”
A press official at CSN who asked not to be identified in accord with company policy declined to comment. An official at BNDES’s press office who asked not to be named in accord with the bank’s policy declined to comment.
CSN shares have dropped 38 percent in the past year while the Bovespa fell 4 percent in the same period.
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