Tuesday, January 02, 2007

Nucor takeover of Harris Steel starts this years round of consolidation

The first business day of 2007 produced the year's first U.S. takeover of a Canadian corporation as Harris Steel Group Inc. (TSX:HSG) forged a deal to be taken over by Nucor Corp. for $1.25 billion in cash.

Shareholders in Harris Steel, which is controlled by its founding family, are being offered $46.25 a share in the continuing consolidation of the global steel industry.

The proposal announced Tuesday has been endorsed by the board of the Toronto-headquartered company, which employs 3,000 people and specializes in concrete reinforcing steel, wire products and industrial metal grating.

"This transaction richly rewards the confidence our shareholders have placed in us," stated John Harris, chairman, CEO and nephew of the company's founder, who with his lawyer cousin David, son of the founder, controls 48.7 per cent of Harris Steel Group's stock, according to its most recent proxy circular.

"In Nucor we have found a partner who shares our values and will respect and nurture the unique culture that has enabled us to thrive."

Source: 680News - ALL NEWS RADIO


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