Brazilian Court Orders Tenaris To Pay An Indemnification In Connection With Its Acquisition Of A Participation In Usiminas In 2012; Potential Aggregate Indemnification Payable By Confab Could Reach Up To BRL942 Million (~$180M)
Portfolio Pulse from Benzinga Newsdesk
A Brazilian court has ordered Tenaris S.A. to pay up to BRL942 million (~$180M) in indemnification related to its 2012 acquisition of a stake in Usiminas. The indemnification is to be paid by Tenaris's subsidiary Confab and certain subsidiaries of Tenaris's affiliate Ternium.
June 18, 2024 | 5:03 pm
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Tenaris S.A. has been ordered by a Brazilian court to pay up to BRL942 million (~$180M) in indemnification related to its 2012 acquisition of a stake in Usiminas. This legal ruling could have a negative short-term impact on Tenaris's stock price due to the financial liability.
The court ruling imposes a significant financial liability on Tenaris, which could negatively impact its stock price in the short term. The amount involved is substantial, and the legal nature of the issue adds to the uncertainty.
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