Tata to delay new offer for Corus
23 January 2007
London: Tata Steel is expected to raise its offer for the Anglo-Dutch steel maker, Corus Plc, but is likely to wait until the deadline set by regulators next week before tabling a new offer.
Tata Steel, which had seemed to be on the verge to acquiring Corus with its initial bid of 450 pence per share is understood to be now contemplating an offer of up to 550 pence a share. According to reports, it will hold back any announcement until 30 January to make it harder for CSN of Brazil, to come back with a raised bid of its own.
Tata Steel had raised its bid to 500 pence after CSN stepped in to the fray with a bid of 475 pence. Tata responded by tabling its last bid of 500 pence, which CSN trumped the same day with a higher offer at 515 pence a share.
The UK takeover panel has given the two rival bidders time until 30 January to revise their bids and has indicated that if the competitive situation continues shortly before that date, the winner would be decided through an auction.