SSAB intention to buy Rautaruukki may have hit the rocks
Sweden's steel giant SSAB intent to buy the Finnish steel company Rautaruukki may have hit the rocks, according to Talouselama. In its unsourced analysis, the Finnish language piece wrote that SSAB's offer was originally scheduled to expire on May 12, and the transaction was conditional based on SSAB acquiring more than 90% of Rautaruukki.
The schedule turned out to be hopeless, the piece wrote. Rautaruukki has more than 40 000 shareholders and its ownership is fragmented badly. The Swedish company extended its offer time on 9 May, because it failed to get sufficient number of shares. Rautaruukki's next notification must be made at the time when shareholders representing 66.7% of shares have approved the acquisition. The new announcement did not come by Wednesday, even though 18 owners is enough to gather up to 72.7% stake.
The sluggishness means that the deal has not gone according to SSAB's plans. Only three weeks is left till the offer expires.
Source Talouselama