BlueScope (ASX:BSL) share price sinks after fierce response to takeover offer

Core Viewpoint - BlueScope Steel has decisively rejected a takeover offer from a consortium of SGH Ltd and Steel Dynamics, asserting that the proposal significantly undervalues the company and its assets [2][3][4]. Group 1: Takeover Offer Details - A non-binding indicative offer was made by SGH Ltd and Steel Dynamics to acquire BlueScope Steel [2]. - This marks the fourth attempt by Steel Dynamics to acquire BlueScope's North American business since late 2024 [4]. - BlueScope's board unanimously rejected the unsolicited takeover proposal, emphasizing it was opportunistic and conditional [2][4]. Group 2: Company Valuation and Financial Outlook - BlueScope Chair Jane McAloon stated that the proposal undervalued the company's world-class assets and growth potential [3]. - The company indicated that if steel spreads and foreign exchange rates returned to historical averages, it could generate an additional $400 million to $900 million in EBIT per annum relative to FY25 [5]. - BlueScope highlighted that the takeover proposal did not adequately recognize the significant synergies and benefits available to the consortium [6]. Group 3: Market Reaction and Future Implications - Following the rejection, BlueScope's share price initially fell over 2% but later recovered to a decline of around 1%, still reflecting a 20% increase from Monday's share price [7]. - There is speculation on whether SGH and Steel Dynamics will return with a larger offer or withdraw after this fourth attempt [8].