Tata Steel drops as Corus bid to meet stiff competition
Tata Steel dropped nearly 2% to Rs 466.90, after Brazil’s CSN late on Friday approached Corus' board with a proposal to pay 475 pence per share in cash.
This more than Tata Steel’s 455 pence per share.As many as 1.5 lakh shares changed hands in the counter on BSE.Tata Steel shares had declined Tata Steel dropped nearly 2% to Rs 466.90, after Brazil’s CSN late on Friday approached Corus' board with a proposal to pay 475 pence per share in cash.in the past few days ahead of Friday’s announcement of the counter bid. From a high of Rs 502.55 on 10 November, it had declined to Rs 475.95 by Friday (17 November).
Corus shares surged on Friday on hopes of a bidding war for the company amid a wave of consolidation in the fragmented global steel industry. It closed 4.8% higher, at 495-1/2 pence, a premium to CSN's terms. Reports suggest that Tata Steel may revise its offer for Anglo-Dutch steelmaker Corus Group after Brazil's Companhia Siderurgica Nacional (CSN) submitted its bid that topped the one by Tata. Reports also suggest that Tata Steel may have to raise the offer by 10% or so in the event of counter bids.
Tata Steel won approval from Corus on 20 October 2006, for its offer to create the world's fifth-largest steelmaker. Corus agreed to Tata's offer after spending a year looking for a strategic partner in Brazil, Russia and India. The bid, if successful, will be India's largest-ever foreign takeover.
CSN said its proposal will also create a top-five steelmaker with an initial annual production capacity of 24 million tonnes. Output will surge to about 50 million tonnes a year due to expansion projects already underway in Brazil.
CSN owns 3.8% stake in Corus.The bids for Corus follows Mittal Steel's $32 billion acquisition of rival Arcelor this year.
This more than Tata Steel’s 455 pence per share.As many as 1.5 lakh shares changed hands in the counter on BSE.Tata Steel shares had declined Tata Steel dropped nearly 2% to Rs 466.90, after Brazil’s CSN late on Friday approached Corus' board with a proposal to pay 475 pence per share in cash.in the past few days ahead of Friday’s announcement of the counter bid. From a high of Rs 502.55 on 10 November, it had declined to Rs 475.95 by Friday (17 November).
Corus shares surged on Friday on hopes of a bidding war for the company amid a wave of consolidation in the fragmented global steel industry. It closed 4.8% higher, at 495-1/2 pence, a premium to CSN's terms. Reports suggest that Tata Steel may revise its offer for Anglo-Dutch steelmaker Corus Group after Brazil's Companhia Siderurgica Nacional (CSN) submitted its bid that topped the one by Tata. Reports also suggest that Tata Steel may have to raise the offer by 10% or so in the event of counter bids.
Tata Steel won approval from Corus on 20 October 2006, for its offer to create the world's fifth-largest steelmaker. Corus agreed to Tata's offer after spending a year looking for a strategic partner in Brazil, Russia and India. The bid, if successful, will be India's largest-ever foreign takeover.
CSN said its proposal will also create a top-five steelmaker with an initial annual production capacity of 24 million tonnes. Output will surge to about 50 million tonnes a year due to expansion projects already underway in Brazil.
CSN owns 3.8% stake in Corus.The bids for Corus follows Mittal Steel's $32 billion acquisition of rival Arcelor this year.
posted by SY at 3:36 PM
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