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Dispute to assume control of Usiminas make company’s share jump

Tuesday, 17 February 2015 18:23:21 (GMT+3)   |   San Diego

Brazil steelmaker Usiminas is investigating claims that a dispute with Ternium to assume controlling positions at the company made Usiminas shares to jump at the nation's stock exchange, following recent media reports.

In a filing with Brazil's CVM, the nation's securities regulator, Usiminas said it has "started inquiries within its administrators and controlling shareholders" regarding the claims, but it hasn't received any relevant information as of yet which could be divulged to the market.

Within the last few months, Usiminas, which is controlled by Nippon Steel and Ternium's Techint, has been in the midst of a fierce competition on who would assume the presidency of Usiminas administration council.

According to media reports, Usiminas is facing several internal problems and continued disagreements between the two major groups that control the Brazilian steelmaker. Recently, Usiminas found that several executives were receiving illegal payments and benefits. In September 2014, Julian Eguren, who was president at Usiminas, lost its position as a result of illegal payments and other remunerations.