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GER - Gerdau prices stock offering for expansion

Reuters reported that Gerdau, the world's second largest maker of long steel products, priced what could be Brazil's largest share offering 2011.

Gerdau sold voting stock for BRL 15.6 a share and nonvoting stock for BRL 19.25 each. Information including the size and financial value of the deal was not immediately available.

The steelmaker, which said on March 21st 2011 it could raise as much as BRL 4.2 billion from the transaction, will use the proceeds to fund expansion and strengthen its capital base.

Gerdau's nonvoting shares, its most widely traded class of stock, dropped 3.6% to BRL 19.37 or about 0.6% higher than the offering. Voting shares fell 3.6% to BRL 15.6, in line with the pricing.

The investment banking unit of BTG Pactual, Brazil's largest independent securities firm, managed the transaction. The securities units of Banco Bradesco and Itau Unibanco also advised Gerdau on the deal.

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