BlueScope Steel Ltd (ASX: BSL) shares are sliding today.
Shares in the $13 billion S&P/ASX 200 Index (ASX: XJO) industrial stock closed Friday trading for $30.24. In morning trade on Monday, shares are changing hands for $29.91 apiece, down 1.1%.
For some context, the ASX 200 is down 0.6% at this same time as investors eye a potential RBA interest rate hike tomorrow.
That's today's price action for you.
Now here's what's happening with the company's top management.
Image source: Getty Images
BlueScope shares under new management
BlueScope shares are slipping today after the company confirmed that Tania Archibald has today started in her new role as managing director and CEO.
The company first announced Archibald's appointment to the top position on 5 November.
BlueScope gave a nod of appreciation to outgoing CEO Mark Vassella, who led the company for eight years. Over that time, the ASX 200 industrial stock returned $4.2 billion to shareholders and invested $3.7 billion in growth. BlueScope shares have also more than doubled in value over the past eight years.
A word from the new CEO
Commenting on her first day as CEO, Archibald said:
Our current $2 billion investment program is now entering the final phase. We're poised to deliver strong cash flows. And I intend to capitalise on it for the benefit of shareholders. As the investment phase ramps down, the delivery phase ramps up.
Looking at what could impact BlueScope shares in the year ahead, she said the company's portfolio is "well positioned".
According to Archibald:
In the United States, steel demand remains robust and there is no better place in the world to make and sell steel. In Asia, BlueScope maintains a unique footprint across major growth economies, while in New Zealand the EAF has reset the operating model and cost base. In Australia, ongoing population growth is driving steel demand across all sectors including housing and infrastructure.
BlueScope shares not for sale 'on the cheap'
Archibald also turned her attention to recently lobbed – and summarily rejected –takeover offer in joint proposal by SGH Ltd (ASX: SGH) and Steel Dynamics Inc (NASDAQ: STLD).
The nonbinding proposal, which valued BlueScope at $13.2 billion, was announced on 6 January.
Today, Archibald said:
The board rejected the proposal, and I supported that rejection. It very significantly undervalued this company. It sought to transfer value away from our shareholders by buying BlueScope on the cheap.
The board remains open to any proposal that genuinely reflects BlueScope's fundamental value. But we are not sitting here waiting. We are getting on the front foot to accelerate the delivery of BlueScope's value.
BlueScope shares closed up a sharp 20.8% on the day the takeover proposal was reported.
