BNamericas reported that minority stakeholders of Brazilian firm TenarisConfab are filing formal complaints with local securities regulator CVM contesting the company's decision to take part in the purchase of ordinary shares of compatriot steelmaker Usiminas. TenarisConfab is a subsidiary of steel tube producer Tenaris.

In late November 2011, Luxembourg based steelmaker Ternium and related companies, including TenarisConfab, entered into share purchase agreements with Brazilian conglomerates Camargo Corrêa and Votorantim, and Usiminas' pension fund CEU to acquire 140 million ordinary shares of the latter in a deal worth some USD 2.65 billion. The stake represents 27.7% of Usiminas' voting capital. Japanese group Nippon Steel is Usiminas main shareholder.

Under the deal, Ternium will acquire 84.7 million shares in Usiminas, its Argentine subsidiary Siderar will buy 30.0 million and TenarisConfab will purchase 25.0 million ordinary shares.

Ternium and Siderar will finance their BRL 4.1 billion share with cash on hand and debt, and after that Ternium, Siderar and TenarisConfab will join Usiminas' controlling group, according to an earlier report. The minority stakeholders are questioning the use of BRL 900 million of the company's funds to finance the acquisition.

(Sourced from www.bnamericas.com)