Reuters: Mergers News: Portugal govt defends Camargo bid for Cimpor

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Portugal govt defends Camargo bid for Cimpor Apr 26th 2012, 14:16 LISBON, April 26 | Thu Apr 26, 2012 10:16am EDT LISBON, April 26 (Reuters) - Portugal's Treasury Secretary Maria Luis Albuquerque defended a takeover bid by Brazil's Camargo Correa for Portuguese cement maker Cimpor from suggestions it was against the national interests and the price was too low. "This operation appears to us the best alternative for the company ... it safeguards the national interests in the most attractive form that was possible to secure," Albuquerque told a parliamentary committee on Thursday after the opposition Socialists demanded the government answer questions on the takeover. Camargo, Brazil's second-largest construction group, launched a 5.5 euros ($7.3) a share takeover bid at the end of last month for the 67.1 percent of Cimpor it does not own. Cimpor's board has said Camargo's bid is too low and lacks detail on its plans for the company's future. Two key Cimpor shareholders, including state-run bank CGD, have already said they are prepared to sell their stakes under Camargo's terms and many analysts expect the bid to succeed. Earlier this month, Portuguese conglomerate Semapa proposed that some Cimpor shareholders should form a joint holding company to try to keep the company in Portuguese hands. But Albuquerque said Semapa's proposal "does not meet the objective of CGD deleveraging". Along with other Portuguese banks, CGD is under pressure to improve its capital position under the terms of a 78 billion euro EU/IMF bailout for Portugal. She said Camargo's bid would make Cimpor's shareholder structure more stable, preserve the company's listing in Lisbon and "brings liquidity advantages to the national economy and allows Cimpor to refinance its debt". She said the government had been informed of the planned bid by CGD and did not oppose the deal, but it had not negotiated on the deal or the price. Cimpor shares were up 0.3 percent at 5.518 euros by 1406 GMT, outperforming the broader market which was down 1.4 percent. Link this Share this Digg this Email Reprints

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