RIO DE JANEIRO ¨C What started as an alliance to bring balance and direction to Brazil¡¯s second-largest steel maker has become a feud spanning three continents that¡¯s diluting the company¡¯s efforts to navigate a global commodities rout.
On one side is Nippon Steel & Sumitomo Metal Corp., with more than 50 years experience quietly steering through the perilous waters of Brazil¡¯s business elites. On the other is Techint, an Italian-Argentine group with the track record and motivation to return the company to profitability and recoup an investment of almost $3 billion.
Just three years after Nippon Steel and Techint agreed to jointly control Belo Horizonte, Brazil-based Usiminas, the union is in disarray. Dozens of lawyers and advisers are helping wage a battle for boardroom power that¡¯s seen voting shares almost triple in the past six months, the world¡¯s best steel-stock performance, even as nonvoting shares slump along with the industry¡¯s prospects. The spat was opening the door for minority shareholders such as billionaire Lirio Parisotto and Grupo BTG Pactual to gain a seat on the board, and possibly choose a chairman, at a meeting that was set for Monday.
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