BNamericas quoted local brokerage SLW analyst Mr Pedro Galdi as saying that Brazilian steelmaker CSN will ask for a seat on compatriot rival Usiminas' board in April 2012 but it will have a limited impact.

He said that "Due to the fact that they are direct competitors, CSN will not be able to participate in most of the strategic meetings."

CSN raised its stake in Usiminas to 20.14% of preferred and 11.66% of common shares in 2011. Under Brazilian law, this amount of shares entitles CSN to a seat on the board.

During 2011, press reports speculated that CSN's objective was to enter its rival's controlling group by buying shares owned by Brazilian conglomerates Camargo Corrêa and Votorantim, both of whom formed part of Usiminas' controlling block.

However, CSN and Usiminas denied the rumors.

In late November 2011, Luxembourg based steel group Ternium entered into share purchase agreements with Camargo Corrêa, Votorantim and Usiminas' pension fund CEU, to acquire 140 million ordinary shares of the steelmaker in a deal worth some USD 2.65 billion. The deal hindered any intention on behalf of CSN to enter Usiminas' control block but its rights to a board seat are uncontested.

Mr Galdi said that "Now, at the beginning of the year, Usiminas will renew its shareholders' agreement and the new controller will announce the goals and synergies to be created with its entrance. Until then, we don't have much new information."

CSN is Brazil's third largest steelmaker. Usiminas is the second biggest after Gerdau, which is Latin America's largest steelmaker.

(Sourced from www.bnamericas.com)