Mum’s the Word for Chaparral Steel Board
09/06/2007 - Chaparral Steel Board of Directors elects to express no opinion and remains neutral toward Gerdau Ameristeel’s August 30 offer to purchase any and all of Chaparral's outstanding 10% Senior Notes due 2013 and the related consent solicitation.
No Opinion on the Tender Offer by Gerdau Ameristeel Corporation for Chaparral's 10% Senior Notes
Chaparral Steel Co.’s Board of Directors has elected to express no opinion and remain neutral toward Gerdau Ameristeel Corp.’s August 30 offer to purchase any and all of Chaparral's outstanding 10% Senior Notes due 2013 and the related consent solicitation.
The notes tender offer and related consent solicitation are being conducted in connection with Gerdau Ameristeel Corp.'s previously announced agreement to acquire Chaparral.
Chaparral indicated that its Board of Directors believes that each noteholder should make their own decision as to whether to tender on an individual rather than a collective basis, based on that noteholder's particular circumstances. Chaparral further indicated that its Board believes the determination whether to tender is a financial decision to be made by each noteholder, in consultation with the noteholder's financial advisor, based on the terms of the offer being made by Gerdau Ameristeel. For these reasons, Chaparral believes that it is not appropriate for it to make a recommendation to noteholders regarding the tender of their notes and expresses no opinion as to the course of action that noteholders should take.
The company further noted that its announcements, as included above, were made pursuant to Rule 14e-2 under the Securities Exchange Act of 1934.
Headquartered in Midlothian, Texas, Chaparral Steel Co. is the second-largest producer of structural steel beams in North America. Chaparral is also a supplier of steel bar products, and is a leading North American recycling company.
