Thyssenkrupp cedes to Arcelor in Dofasco steel fight

0 Comments | AFP, January, 2006

BERLIN (AFP) — German steel giant Thyssenkrupp decided not to raise its bid for Canadian steel producer Dofasco, leaving a clear field to its European rival Arcelor.

Arcelor, the second-biggest steel group in the world, has been locked in a two-month bidding war with Thyssenkrupp to seize control of Dofasco. The Canadian group is seen as offering a key to the North American auto industry.

"Thyssenkrupp will not raise its offer of 68 Canadian dollars per share," the company said in a statement, adding that a higher offer would not be profitable.

Arcelor said a week ago that its new bid of 71 Canadian dollars (61 US dollars, 50 euros) was 4.4 percent higher than the rival offer of 68 Canadian dollars made by Thyssenkrupp.

Dofasco is a major supplier to...