On Tuesday, the South Korean steelmaker Posco reported that it and its partners will acquire a 15 percent interest in an iron ore mining firm in Canada, controlled by ArcelorMittal (NYSE:MT), at a price of $1.1 billion. It was not disclosed the portion that each partner will invest, but the purchase would give Posco, the sixth-largest steelmaker in the world by output, larger access to a key raw material for its production of steel.
An investor in Knight Capital Group (NYSE:KCG), Ann Jimenez McMillan, has brought a lawsuit against the firm, saying that the $3.75 per share that Getco is paying to take Knight over undervalues the company. McMillan said in a Delaware Chancery Court complaint that Knight directors are duty-bound to find the best price for company shares, but “locked-up” the Getco deal in violation of those duties. The plaintiff’s lawyers contended that the price is “unfair and grossly inadequate,” and will not allow investors “their right to share proportionately and equitably in the true value of the company’s valuable and profitable business, and future growth.”
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Late Monday, The Middleby Corporation (NASDAQ:MIDD) reported the cash purchase of Viking Range Corporation for $380 million. Headquartered in Mississippi, Viking is a top maker of premium residential cooking ranges, ovens, and kitchen appliances with about $200 million in annual revenues. Chairman and Chief Executive Selim A. Bassoul of Middleby said that the acquisition strategically positions the firm as a leading manufacturer in the sector with a top brand.
Chief Executive James Bernhard of Shaw Group (NYSE:SHAW) has divested the majority of his interest in the firm he founded subsequent to shareholders okaying its sale to Chicago Bridge & Iron Company (NYSE:CBI) in December. Late last week, Bernhard reduced his position in Shaw from 1,131,603 to 143,356 shares, according to filings with United States securities regulators on Monday, in a sale that would have brought more than $45 million.
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