Robbins Umeda LLP Announces An Investigation Of The Acquisition Of Gerdau Ameristeel Corporation By Gerdau S.A.

Robbins Umeda LLP has commenced an investigation into whether the minority shareholders of Gerdau Ameristeel Corporation ("Gerdau Ameristeel" or the "Company") (NYSE: GNA) have been unfairly prejudiced or harmed in connection with the proposed acquisition of the Company by its majority shareholder, Gerdau S.A. (NYSE: GGB). If the transaction is completed, Gerdau Ameristeel shareholders will receive $11.00 in cash for each share of Gerdau Ameristeel common stock they hold. The transaction will be implemented pursuant to a plan of arrangement. Subject to completion of definitive documentation for the transaction, a management information circular will be prepared and mailed for a special meeting of Gerdau Ameristeel shareholders that will be held early in the third quarter of 2010.

Of particular note is that the Company had established a Special Committee who retained RBC Capital Markets ("RBC") as its independent valuator for the purpose of providing a valuation in accordance with applicable regulatory requirements. RBC's valuation to the Special Committee concluded that the value of the common shares of Gerdau Ameristeel could be as high as $13.00 per share, significantly above the value offered by Gerdau S.A.

If you are a shareholder of Gerdau Ameristeel and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at [e-mail].

Robbins Umeda LLP is a California-based law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions. For more information about the firm, please go to http://www.robbinsumeda.com.

Advertisement

>To order reprints of this article, click here: Reprints