FORM 6 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
As of 08/15/2006
Ternium S.A.
(Translation of Registrant's name into English)
Ternium S.A.
46a, Avenue John F. Kennedy - 2nd floor
L-1855 Luxembourg
(352) 4661-11-3815
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of
1934.
Yes X No
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If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): Not applicable
The attached material is being furnished to the Securities and Exchange
Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange
Act of 1934, as amended.
This report contains Ternium S.A.'s press release Providing Notice of
European Commission Decision on Luxembourg's 1929 Holding Company Regime
Ternium Provides Notice of European Commission Decision on Luxembourg's 1929
Holding Company Regime
LUXEMBOURG--(BUSINESS WIRE)--Aug. 14, 2006--Ternium S.A. (NYSE:TX)
("Ternium") announced today that the European Commission, or the EC,
following an investigation of Luxembourg's 1929 holding company
regime, has determined that the tax treatment of such holding
companies is incompatible with the EU common market, and is requiring
Luxembourg to cancel or modify the tax treatment of the 1929 holding
companies not later than December 31, 2006. As a holding company under
Luxembourg's 1929 regime, Ternium is exempt from corporate income tax
and certain other Luxembourg taxes and its dividend payments are
exempt from withholding tax.
The EC decision contemplates a transition period, which would
permit Luxembourg to allow pre-existing 1929 holding companies to
continue benefiting from their current tax regime after implementation
of the EC decision until December 31, 2010. However, pursuant to
Article 2, paragraph 3, of the decision, such benefit would appear to
terminate if all or part of the capital of such companies is
transferred during the transition period. Ternium believes, based on
the reasons that led the EC to allow a transition period, that the
above-described effect should not apply to listed companies with
publicly traded securities. As neither listed companies nor their
shareholders are able to prevent trading in the listed companies'
shares, a different interpretation would defeat the purpose of the
transition period that the EC deemed necessary to accommodate the
expectations and reorganization needs of such companies and their
shareholders.
Ternium is confident that the EC, or the Grand-Duchy of Luxembourg
in its implementing legislation, will clarify that the above-described
effect regarding capital transfers during the transition period does
not apply to listed companies, such as Ternium, but no assurances can
be given in that respect. Ternium will seek such clarification and
take appropriate legal action in the unexpected case that the
authorities fail timely to confirm Ternium's interpretation.
Some of the statements contained in this press release are
"forward-looking statements." Forward-looking statements are based on
management's current views and assumptions and involve known and
unknown risks that could cause actual results, performance or events
to differ materially from those expressed or implied by those
statements. These risks include but are not limited to risks arising
from uncertainties as to gross domestic product, related market
demand, global production capacity, tariffs, cyclicality in the
industries that purchase steel products and other factors beyond
Ternium's control.
CONTACT: Ternium S.A.
Investor Relations:
Sebastian Marti
USA: +1-866-890-0443
Mexico: +52-81-8865-1240
Argentina: +54-11-4018-2389
www.ternium.com
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TERNIUM S.A.
By: /s/ Roberto Philipps By: /s/ Daniel Novegil
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Name: Roberto Philipps Name: Daniel Novegil
Title: Chief Financial Officer Title: Chief Executive Officer
Dated: August 14, 2006