onesteel not proceeding with offer

17 October 2008
OneSteel decides not to proceed with an offer for Steel & Tube
OneSteel Limited (OneSteel) said today that it had decided not to proceed with an
offer by OneSteel NZ Holdings Limited (OneSteel NZ) for the shares in Steel &
Tube Holdings Limited (Steel & Tube) that it does not already own.
Geoff Plummer, OneSteel’s Managing Director and Chief Executive Officer said,
“The situation has changed dramatically since OneSteel NZ announced its
intention to make an offer for Steel & Tube last month.
Market volatility has increased and the outlook for Steel & Tube is more uncertain
as a consequence of its exposure to the New Zealand economy.
Given the risk associated with the proposed offer has increased significantly,
OneSteel NZ has decided not to proceed with the proposed NZ$4.00 cash offer.”
Under the New Zealand Takeovers Code, OneSteel NZ is able to decide not to
proceed with the offer at any time before the offer documents are dispatched to
Steel & Tube shareholders.
Ends
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Good decision imo..