The takeover consortium initially launched the conditional bid for BlueScope in January at $30 per share, which was quickly rejected by the BlueScope board as too low.

The consortium came back with a revised bid for BlueScope on February 18, offering $32.35 per share, which was, they argued, equivalent to $34 per share once BlueScope's interim and special dividends were added back in.

Bid still too low

The board on Thursday responded to the revised offer, saying it was really only worth $31 per share, given that it planned to pay shareholders $1.65 per share plus another $1.35 in distributions.

The board added:

On this basis, the board has assessed that the scheme consideration would be only $31 per share given that no transaction with the consortium could be completed prior to the payment of the further distributions already announced by BlueScope. If a transaction completed in calendar year 2027, that would cause a further reduction in the offer price below $31 per share.

The board said in its statement that it stood by comments made prior to the increased bid being offered, that the proposal "significantly undervalued the company''.

It added:

The board maintains its view on the fundamental value of BlueScope. The revised proposal does not adequately address our valuation concerns. Consequently the offer price is not sufficient for the board to recommend a scheme of arrangement to its shareholders.

Value could be increased

The board said that despite the revised bid being a "best and final" offer, "we consider that there are various ways to increase the vale that BlueScope shareholders could receive''.

They added:

The board remains open to a transaction at a price that reflects the fair value of BlueScope.

The board said they were happy to look at the assumptions made in the financial modelling of the proposed acquirers and provide feedback.

The board of BlueScope also said there were onerous conditions to the proposed takeover, one of which was the requirement for "hard" exclusivity, meaning BlueScope could not engage with other potential bidders.

They also considered it onerous that the bidders wanted a unanimous recommendation from the board in favour of the bid before due diligence had started.

BlueScope shares were trading lower on Thursday, down 3.1% at $27.50. The company was valued at $12.4 billion at Wednesday's close.

The post BlueScope shares on the slide as takeover again rebuffed appeared first on The Motley Fool Australia.

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.

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.

The post BlueScope shares slipping as new CEO backs rejection of $13.2 billion takeover offer appeared first on The Motley Fool Australia.

In a notice lodged with the ASX late on Thursday afternoon, the superannuation fund indicated that it had increased its stake in BlueScope, which on Wednesday rejected a $30 per share takeover offer from SGH Ltd (ASX: SGH) and US company Steel Dynamics (NASDAQ: STLD).

AustralianSuper's stake in BlueScope increased from 12.5% to 13.52% following share purchases on Monday and Tuesday at prices ranging from $24.38 to $29.55.

Strong bargaining position

Given that AustralianSuper's stake is higher than 10%, it puts the super fund in a strong bargaining position to potentially block any takeover bid or hold out for a higher price.

Generally, under a takeover scenario, companies can move to compulsorily acquire the shares they do not own if they manage to gain control of more than 90% of a company's shares.

The BlueScope board on Wednesday formally rejected the $30 per share bid from SGH and Steel Dynamics, after news of the bid broke on Monday.

The BlueScope board said it had unanimously rejected the bid, saying it undervalued the company.

BlueScope Chair Jane McAloon put it this way:

Let me be clear – this proposal was an attempt to take BlueScope from its shareholders on the cheap. It drastically undervalued our world-class assets, our growth momentum, and our future – and the board will not let that happen. This is the fourth time we've said no, and the answer remained the same – BlueScope is worth considerably more than what was on the table.

Ms McAloon said the company was "well recognised" for building shareholder value and had delivered over $3.8 billion in shareholder returns since 2017, achieving an average 18% return on invested capital.

Industry at a low point

Ms McAloon also said that steel spread prices in Asia were currently at a low point, and if they returned to historical average levels, "this would be expected to generate an additional $400 to $900 million of EBIT per annum relative to FY2025''.

She added that BlueScope was targeting $500 million in extra earnings from growth programs, which were "well under way", and the company was also targeting $200 million in cost and productivity improvements this financial year.

The proposal from SGH and Steel Dynamics would have involved SGH acquiring all of the shares in BlueScope and then on-selling BlueScope's North American businesses to the American company.

BlueScope shares closed at $29.40 on Thursday, valuing the company at $12.78 billion.

The post AustralianSuper boosts its stake in takeover target BlueScope Steel appeared first on The Motley Fool Australia.

At the time of writing, the steel products manufacturer's shares are down 1% to $29.56.

What's going on with BlueScope shares?

Investors have been hitting the sell button today after the company released an update on the takeover approach it received from a consortium comprising SGH Ltd (ASX: SGH) and Steel Dynamics, Inc (NASDAQ: STLD).

The takeover proposal offered to acquire all BlueScope shares by way of a scheme of arrangement at a price of $30.00 cash per share.

According to the release, the BlueScope board has unanimously rejected the unsolicited, non-binding, indicative, and conditional takeover proposal from the consortium.

It notes that the takeover proposal was subject to numerous conditions, including the consortium undertaking extensive due diligence on the company on an exclusive basis and securing significant debt financing.

The board unanimously rejected the takeover proposal on the basis that it "very significantly undervalued BlueScope."

Commenting on the decision, the company's chair, Jane McAloon, didn't hold back. She said:

Let me be clear – this proposal was an attempt to take BlueScope from its shareholders on the cheap. It drastically undervalued our world-class assets, our growth momentum, and our future – and the Board will not let that happen. This is the fourth time we've said no, and the answer remained the same – BlueScope is worth considerably more than what was on the table.

The BlueScope team is well recognised for driving and delivering value for our shareholders and customers. Since its restructure was completed in financial year 2017, BlueScope has invested over $3.7 billion in growth projects, delivered over $3.8 billion of shareholder returns and achieved an 18% average return on invested capital. Under the experienced leadership of the incoming MD&CEO, Tania Archibald, the Board is highly confident that management will continue to deliver superior shareholder value.

Undervaluing its assets

BlueScope believes the consortium's takeover proposal failed to adequately recognise the value of its assets and comes at a time of lower steel spreads in Asia.

It highlights that if steel spreads and foreign exchange rates reverted to historical average levels, this would be expected to generate an additional $400 million to $900 million of EBIT per annum relative to FY 2025.

The company also points out that the consortium are seeking to debt-fund the takeover, and BlueScope had virtually no net debt at FY 2025. As a result, it feels that the bidders are seeking to use BlueScope's strong balance sheet to help fund their opportunistic takeover proposal.

The post BlueScope shares fall after rejecting 'significantly undervalued' takeover offer appeared first on The Motley Fool Australia.

For a quick refresher, on Monday, it released an announcement the company has submitted a Non-Binding Indicative Offer (NBIO), together with Steel Dynamics Inc. (NASDAQ: STLD).

The offer is to acquire 100% of BlueScope Steel by way of a scheme of arrangement (the Proposal).

In the announcement, the company said if the proposal is implemented and following the transaction close, SGH would on-sell BSL's North American operations to SDI.

This includes BSL's North Star Flat Rolled Steel Mill and Building and Coated Products North America businesses. 

SGH would retain the remaining BSL "Australia + Rest of World" operations.

This includes Australian Steel Products, Asia Coated Products, and New Zealand and Pacific Islands businesses.

According to the announcement, the consortium has offered $30.00 cash per BlueScope share. 

What did management say?

Commenting on the proposal, Ryan Stokes, Managing Director & Chief Executive Officer of SGH said: 

We believe BlueScope's Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses. We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.

Bell Potter weighs in

Following the announcement, Broker Bell Potter released a report with analysis on the company following the proposal. 

The broker said an all-cash consideration of A$30.00/sh was offered, representing a 27% premium to BSL's share price at NBIO submission (12 December 2025). 

This values BSL at 18.6x EV / FY25a EBIT and 9.5x EV / FY25a EBITDA (SGH: 15.2x EV / FY25a EBIT and 11.4x EV / FY25a EBITDA). 

Bell Potter also noted that Steel Dynamics had made three prior offers through a consortium (not with SGH Ltd) and alone, targeting BlueScope Steel's North American operations. 

However all prior proposals were rejected on the basis they undervalued BSL and presented a significant regulatory hurdle.

Ultimately the broker believes SGH is securing a strong deal. 

We believe SGH is securing a good deal for shareholders, acquiring the Australia and RoW businesses at cycle-lows. These assets will benefit from SGH's capital-backing and high-performance operating model which has proven successful with the Boral turnaround.

Valuation remains the same

SGH shares have already jumped 6% higher in 2026. 

But following Monday's announcement, Bell Potter made no material changes to EPS forecasts or valuations.

The broker has maintained its hold recommendation and $52.00 price target. 

This indicates an upside of approximately 6%. 

The post What's Bell Potter's view on SGH shares after the BlueScope Steel acquisition proposal? appeared first on The Motley Fool Australia.

But today's slight dip has barely dented the huge gains the Australian-based steel manufacturer has made for the week so far. Over the past five days, BlueScope's share price has jumped 22.87% and it is now trading 54.21% higher than this time last year.

What pushed BlueScope Steel's shares higher this week?

On Monday afternoon, after the ASX closed, the company posted an ASX announcement confirming takeover speculation in the media.

BlueScope said it has received an unsolicited, non-binding, and indicative proposal from an Australian and US consortium to acquire all BlueScope shares under a scheme of arrangement. The consortium comprises SGH Ltd (ASX: SGH) and US-based Steel Dynamics (NASDAQ: STLD).

According to the announcement, the consortium has offered $30.00 cash per BlueScope share. 

The deal is subject to exclusivity, due diligence and a material adverse change in BlueScope's business. It is also subject to a unanimous recommendation from the BlueScope board, approval of BlueScope shareholders, no further share buy-backs, final approvals from SGH and Steel Dynamics' boards, and necessary regulatory approvals. BlueScope has not yet decided if it will accept the proposal.

Investors were clearly impressed with the news which caused a flurry of buying activity yesterday morning.

Are the shares a buy, hold or sell for 2026?

BlueScope has previously rejected takeover offers of up to $29.00 per share saying that they undervalue the company's future prospects. At $30.00 per share, I'm uncertain whether the consortium's latest offer will be enough to get the latest deal over the line. 

BlueScope's growth plan for 2026 includes focusing on its operation efficiency, advancing majority projects and plans to target $500 million in annual earnings growth by 2030.

To me, the company and its growth plans represent significant value.

What do analysts think of the stock?

TradingView data shows that analysts are mostly positive on the outlook for BlueScope Steel shares. Out of 9 analysts, 6 have a buy or strong buy rating. 

The maximum predicted target price is $37.00 per share. At the time of writing that implies the stock could jump another 25.47% over the next 12 months. 

While there is no crystal ball to tell exactly where the share price will be this time next year, it's clear that some analysts think the stock has a lot more room to run, even after this week's uptick.

The post BlueScope Steel shares soar 23%: Buy, hold or sell for 2026? appeared first on The Motley Fool Australia.

At the time of writing, the steel products company's shares are up 20% to $29.22.

This compares favourably to the ASX 200 index, which is up 0.2% in early trade.

Why are BlueScope shares charging higher?

Investors have been scrambling to buy the company's shares this morning following the release of an announcement after the market close on Monday in response to takeover speculation in the media.

Well, it turns out that the speculation was correct, with BlueScope revealing that it has received four takeover offers since 2024 from the same suitor.

According to the release, on 12 December it received an unsolicited, non-binding, and indicative proposal from an Australian and US consortium to acquire all BlueScope shares by way of a scheme of arrangement.

The consortium, which comprises SGH Ltd (ASX: SGH) and US-based Steel Dynamics (NASDAQ: STLD), has tabled an offer of $30.00 cash per BlueScope share.

The company notes that the indicative proposal would see SGH acquire all of BlueScope's shares and then on-sell BlueScope's North American businesses to Steel Dynamics.

The proposal is subject to a number of conditions. This includes exclusivity, due diligence, no material adverse change in BlueScope's business, a unanimous recommendation from the BlueScope board, approval of BlueScope shareholders, no further share buy-backs, final approvals from SGH and Steel Dynamics' boards, and necessary regulatory approvals.

BlueScope also highlights that the indicative proposal includes highly conditional debt funding support.

What's next?

BlueScope is yet to make a decision on this proposal and is considering the offer.

However, it is worth noting that after rejecting previous offers of $24.00 per share, $27.50 per share, and $29.00 per share "as they significantly undervalued BlueScope and its future prospects, and presented significant execution risk in relation to regulatory outcomes", it remains to be seen whether this latest proposal will be enough to get a deal over the line.

Commenting on the offer, SGH's managing director and CEO, Ryan Stokes, said:

We believe BlueScope's Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses. We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.

Steel Dynamics' CEO, Mark Millett, adds:

We believe the acquisition of BlueScope's North American Assets will be highly complementary to our existing operations and further expands our capabilities domestically. The combination of BSL's North American teams and assets with SDI would be an excellent fit in every sense and create value for all stakeholders.

The post BlueScope shares jump 20% on takeover news appeared first on The Motley Fool Australia.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to push higher

The Australian share market looks set to push higher on Tuesday following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 35 points or 0.4% higher. In late trade in the United States, the Dow Jones is up 1.55%, the S&P 500 is 0.7% higher, and the Nasdaq is up 0.65%.

Oil prices rise

It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$58.29 a barrel and the Brent crude oil price is up 1.6% to US$61.74 a barrel. Traders were buying oil in response to Venezuelan uncertainty.

BlueScope takeover

BlueScope Steel Ltd (ASX: BSL) shares will be on watch today after the steel products company confirmed that it has received a $30.00 per share takeover offer from a consortium comprising SGH Ltd (ASX: SGH) and US-based Steel Dynamics (NASDAQ: STLD). After rejecting three earlier offers, the company is currently considering this one.

Gold price charges higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a good session on Tuesday after the gold price jumped overnight. According to CNBC, the gold futures price is up 2.8% to US$4,449 an ounce. This was driven by safe haven demand after UK strikes on Venezuela.

Buy Northern Star shares

Northern Star Resources Ltd (ASX: NST) shares are good value according to analysts at Bell Potter. According to the note, the broker has retained its buy rating and $30.00 price target on the gold miner's shares. In response to last week's selloff following a production downgrade, Bell Potter said: "NST closed 8.6% lower on the announcement equating to A$3.3bn in market capitalisation loss. Assuming that these issues are merely one-offs, with production normalizing over 2H, we would argue the response is potentially overdone."

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.