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CSN's $5.7 Billion Bid For Cimpor Fails

Brazilian steelmaker's $5.7 billion takeover bid for Portugal's largest cement company Cimpor has failed; Cimpor's board rejected the bid as too low.

LISBON, Portugal (AP) -- Brazilian steelmaker Companhia Siderurgica Nacional's euro4.14 billion ($5.7 billion) takeover bid for Portugal's largest cement company Cimpor has failed, the Lisbon Stock Exchange announced Tuesday.

CSN captured only 8.5 percent of Cimpor's stock since it launched its bid in December, the Portuguese bourse said. Cimpor's board had rejected the bid as too low.

The bid also attracted rival interest from other Brazilian companies.

Camargo Correa SA, one of Brazil's largest construction businesses, has built up a 31 percent stake in Cimpor, and Brazilian conglomerate Votorantim has purchased 21 percent of the stock.

Cimpor has business in Brazil, Spain, Egypt, South Africa, Turkey and China.

CSN has in recent years met setbacks in its efforts to expand abroad. Three years ago it lost a bidding war for Britain's Corus Group PLC and also failed to acquire U.S.-based steel maker Wheeling-Pittsburgh Corp.

Cimpor shares closed Monday at euro5.85 and, after being briefly suspended Tuesday while the outcome of the takeover bid was announced, it resumed at euro5.60.

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