Alfa postpones Hyslamex decision to Dec 31

Shareholders of Mexican steel and industrial conglomerate Grupo Alfa (BMV: ALFAA) unanimously approved a proposal to extend until December 31 the time period for deciding the fate of steel subsidiary Hylsamex (BMV: HLYSAMXB). The decision was made at an extraordinary general meeting (EGM) of Alfa's shareholders, Alfa told the Mexico City stock exchange (BMV) in a statement. Alfa's president Dionisio Garza Medina proposed the idea, saying the company needed more time to analyze the various options available to it. Alfa, which currently holds 42.5% of the shares and 51% of the voting rights of Hylsamex, wants to make a decision that will generate the most value for its own shareholders, as well as those of Hylsamex, he said. Meanwhile, Argentine newspaper El Cronista reported that Argentine-Italian group Techint has made a formal offer for Hylsamex. Although the newspaper did not reveal how much Techint had offered, it quoted sources close to the negotiations who estimated the Mexican iron and steel company would cost approximately US$1.5bn. A number of other companies are also in the race to buy Hylsamex, El Cronista added, including Mexican steel and industrial conglomerate Grupo Imsa, Brazilian steelmaker Gerdau, US steelmaker and recycler Nucor and international steel giant Mittal Steel. Sales at Hylsamex rose 20% to 6.5bn pesos (US$594mn) in the first quarter of 2005, while net profit increased 45% to 1.03bn pesos.