por admin » Lun Mar 21, 2011 9:14 am
Gerdau to Sell Up to $2.5 Billion of New Stock; Shares Plunge in Sao Paulo
By Jessica Brice - Mar 21, 2011 9:45 AM ET
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Business ExchangeBuzz up!DiggPrint Email .Gerdau SA (GGBR4), Latin America’s largest steelmaker, plans to sell as much as 4.2 billion reais ($2.53 billion) of new common and preferred shares in Brazil and abroad. Gerdau’s voting stock fell the most in nine months.
The company aims to raise 3.8 billion reais to 4.2 billion reais in the primary offering, Gerdau said today in a regulatory filing. Metalurgica Gerdau SA and BG Participacoes also plan to sell existing preferred shares in a secondary offering.
Gerdau’s controlling shareholders will use the proceeds from the secondary offering to buy stock in the primary sale.
Gerdau’s voting stock fell 4.2 percent to 16.18 reais at 10:34 a.m. in Sao Paulo trading, after earlier dropping as much as 5.3 percent, the biggest decline since June 4. The preferred shares fell 4.5 percent to 20.35 reais.
To contact the reporter on this story: Jessica