Jiahuang Capital: The latest offer for Bosigang Steel is not a one-shot winning bid.

RBC Capital Markets believes that the increased acquisition offer made by SGH and Steel Dynamics for BlueScope Steel is unlikely to succeed. In a report, Royal Bank of Canada stated that the offer of 34 Australian dollars per share "is more of a tool to pressure the BlueScope Steel board, encourage them to engage and allow SGH/STDL to conduct due diligence, rather than a 'knockout' bid". The brokerage estimated that the mid-point value of BlueScope Steel is in the mid-thirty Australian dollar range and believes that an offer would need to "at least" reach that level to succeed. Royal Bank of Canada stated, "We do not believe that a 13% increase is enough to bridge the gap between the board's view of its fundamental value." The two companies had previously made a bid of 30 Australian dollars per share for BlueScope Steel in December. BlueScope Steel rose 2.5% on the Sydney market, reaching 28.71 Australian dollars.