Steely resolve

OneSteel has successfully sold 95 per cent of new shares on offer to institutional investors, raising $584 million in the wholesale component of the capital raising it announced last week (Reinforcing OneSteel, April 16).

It is a victory for the underwriting team led by UBS's Kelvin Barry and Andrew Stevens, proving once again that UBS forms 60 per cent of the word 'bonus'. Underwriting and advisory fees will form the bulk of OneSteel's $17 million in estimated fund raising costs.

Vijay Cugati, Tom Story and Andrew Finch from Allens Arthur Robsinson are also advising OneSteel, while Dave Friedlander, Mark Bryant and Amanda Isouard from Mallesons Stephen Jaques are advising UBS.

The $584 million raised came through a $240 million placement and a 2-for-5 entitlement offer raising $344 million.

"We are very pleased with the positive response from investors," said OneSteel chairman Peter Smedley. "The successful equity raising reflects the strong support we have received since announcing the offer last Thursday."

The raising may also give support to the rumoured musings of fellow BHP spin-off BlueScope Steel. BlueScope, which raised $413 million in December and Februrary, is thought to be considering another capital raising according to speculation. Its previous fundraising effort fell about $137 million short of the target.

That capital raising was underwritten by Credit Suisse and JPMorgan. The Credit Suisse team, led by Rob Stewart, Max Billingham and Campbell Lob, advised BlueScope on its 2007 purchase of IMSA Steel Corp, while the JPMorgan team was led by Seth Schwartz and Steve McLean.

Last week BlueScope appointed former Shell Finance chief and Alumina CFO Kenneth Dean to the board. Dean, also a director of Santos, has been a director of Alcoa, Woodside and Shell Australia. Chairman Graham Kraehe said Dean's appointment would bring financial, treasury and mergers and acquisitions expertise to the board.

Rumours were further stoked when British fund M&G became a significant shareholder late last month. M&G was named by London's The Times as a possible bidder for Macquarie Airports' Bristol International Airport.