Brazil steelmaker Companhia Siderurgica Nacional (CSN) and BTG Pactual are looking for a seat at the financial committee and board of members of local flats producer Usiminas.
A competitor and a minor shareholder at Usiminas, CSN has requested the local anti-trust authority, Cade, to have the ability to appoint three representatives for both Usiminas’ board of members and financial committee.
Cade has prevented CSN from engaging politically in Usiminas. CSN owns a 17.4 percent stake at the company.
In its request, CSN asked Cade to have two representatives at the board of members of the flats producer, as the two board members representing minority shareholders in Usiminas “have failed to meet their fiduciary duties,” said a media report citing CSN’s vice-president, Paulo Caffarelli.
CSN, a major steelmaker in Brazil, has also signed a conduct adjustment term (TAC) with a Rio de Janeiro state environment authority, in which the steelmaker is expected to meet a series of obligations. CSN is expected to invest BRL 178 million to environmentally adequate its Presidente Vargas mill in the city of Volta Redonda. Such actions should be concluded by September 2017.
Another media report said there is another company looking to have a representative at Usiminas’ board of members.
BTG Pactual, which has a 3 percent investment in Usiminas through a voting capital, seeks to have a representative in the company’s board as well.