Russian steel major Severstal has offered Tata Steel
$1.9 billion for Corus'' Scunthorpe plant, which, British
media reports said, the Indian steelmaker may sell to
retire some of the debts it has raised to finance its
$12.1-billion acquisition of the Anglo-Dutch steelmaker
plant, which is part of Corus'' assets, the report said,
was "Britain''s biggest remaining steelmaking operation".
from Russia, Brazil and Europe have shown interest in
buying the Corus assets. "Interested parties include
Brazil''s Gerdau, Russia''s Evraz and Arcelor Mittal,"
the report quoted unnamed sources as saying.
Steel, however, denied any such move and refused to comment,
terming the report as speculation.
Steel is busy finalising the financial structure and integration
of Corus operations with the company.
was one of the suitors for Corus and there was widespread
speculation that the company''s billionaire owner Alexie
Mordashov might put in a counter bid. The company has
also raised more than $2 billion through listing in London
in November last year.
however, say that a sale of Corus unit that produces long
products didn''t make sense for Tata Steel. In fact, the
acquisition of Corus was for the specialised products
and technology, they point out.
report valued the Scunthorpe division''s at $3 billion
without figuring out the debt. Scunthorpe plant produces
about 80 per cent of the long products while the Rotherham
plant produces the remainder, the report said.
meanwhile, announced an increase in the prices of long
products by up to 10 per cent for deliveries in the second
quarter of 2007.
increase in prices is due to increased demand in many
of its markets, the company said in a release.
market conditions and strong demand in several of our
key sectors, including construction, energy and engineering
support this price increase across our product range,"
said Derek Randall, commercial
director of long products division.
product pricing will be provided to customers in the forthcoming
weeks, he added.