Steelmaker Makes Bid for Canadian Firm

Arcelor, the world’s second-biggest steelmaker, made a hostile bid Wednesday for Dofasco Inc. of Canada to increase sales to North American automakers.

Luxembourg-based Arcelor will offer 56 Canadian dollars in cash for each Dofasco share, 27% more than Tuesday’s closing price, valuing the deal at 4.3 billion Canadian dollars ($3.7 billion). Dofasco’s board will review the offer and consider alternatives, spokesman Gordon Forstner said.

Arcelor Chief Executive Guy Dolle seeks to add customers such as Ford Motor Co. and Toyota Motor Corp. to its European clients such as PSA Peugeot Citroen. “They are aiming to be a supplier with worldwide presence,” said Alberto Vigil, who manages 4 billion euros ($4.7 billion) for Banco Santander Gestion de Activos in Madrid, including Arcelor shares.

Arcelor’s shares fell 42 cents, or 2.1%, to 20 euros in Paris. Shares in Dofasco rose 15.05 Canadian dollars, or 34%, to a record 59.05 Canadian dollars at the close of trading in Toronto, for a market value of 4.6 billion Canadian dollars. That was their biggest gain since at least 1987.

Dofasco, Canada’s largest steelmaker by sales, would give Arcelor steel plants in Ontario that sell more than a third of their products to U.S. carmakers. Arcelor and Dofasco already have a plant making car body panels in Hamilton, Ontario.