BlueScope (ASX:BSL) share price soars 17% on SGH (ASX:SGH) takeover bid

Core Viewpoint - BlueScope Steel Ltd's share price surged 17% following a takeover bid from SGH Ltd, indicating market optimism about the potential acquisition [1]. Group 1: Takeover Bid Details - SGH and Steel Dynamics have made a non-binding indicative offer to acquire BlueScope Steel, with SGH focusing on Asia Pacific operations and Steel Dynamics on North American operations [2]. - The offer of A$30 per share represents a 27% premium over BlueScope's closing price at the time of the bid, although this premium has decreased to less than 23% at pre-open prices [2]. - The offer is contingent upon satisfactory due diligence and other customary conditions [3]. Group 2: BlueScope's Response and Valuation - BlueScope's management is currently evaluating the takeover proposal [4]. - The BlueScope board aims to optimize shareholder value and has previously rejected offers of A$27.50 and A$29 per share, indicating that the current offer undervalues the company [5]. - BlueScope believes the A$30 offer is nearly 10% lower than a previously rejected offer and emphasizes its resilient earnings and potential for growth due to cost improvements and capital projects [6]. Group 3: Future Prospects and Investments - BlueScope has invested A$2.3 billion, which is expected to lead to sustainable earnings and an additional A$500 million in earnings per year by 2030 [7]. - The company holds significant value in its 1,200 hectares of land, which is being rezoned and developed for monetization [7].