Exame magazine, citing a source familiar with the deal, reported that Ternium , the second largest Latin American steel group, has offered to buy a 26% voting stake in former shareholder Usiminas, one of Brazil's biggest steelmakers.

As per report “Luxembourg based Ternium offered to pay BRL 40 a share for the combined stake that Brazilian conglomerates Camargo Correa and Grupo Votorantim have in Usiminas”

That equals a 72% premium over the price of Usiminas' voting shares, which closed on Wednesday at BRL 23.25.

According to the source, both Camargo and Votorantim are willing to exit their investment in Usiminas at such price. Exame also reported that Nippon Steel Corp , Usiminas' largest shareholder with about 28% voting stake, is unlikely to exercise its right of first refusal.

Calls made to the mobile phones of two Usiminas spokespeople seeking comment were not immediately answered. Calls made to the Buenos Aires offices of Ternium were not returned after working hours.

The news comes as speculation eased in recent weeks that Usiminas was up for sale to smaller rival CSN.

(Sourced from Reuters)