CSN still in race for Corus; denies FT report

Our Corporate Bureau
25 January 2007

Brazilian steel-maker CSN says it is still committed to acquiring Anglo-Dutch steel maker Corus, and has denied a report in the Financial Times suggesting that CSN's bid could be derailed by a legal dispute over an iron ore supply in Brazil, reports CNBC-TV18.

The Financial Times' report suggested that Brazilian mining group CVRD would challenge CSN''s ability to supply iron ore to Corus, should its bid succeed.

Iron-ore supply is one of the key factors weighing in favour of the Brazilian steelmaker in the chase for London-based Corus group. In response to this report, a CSN spokesperson said, "Should CSN acquire Corus, it will exercise its rights to supply iron ore from its Casa de Pedra mine to all its operations, including those in Europe."

"There is no basis for this story. There is no change to our position or our commitment to acquire Corus," he added.

The UK Takeover Panel is slated to decide on the process for the Corus acquisition by 30 January.