CSN gains $520 million

01 Feb 2007

Brazilian steel maker CSN stands to make a profit of $520 million — over $400 million by selling over 34 million shares of Corus in its possession. It is also entitled to receive about $120 million from Corus on the basis of its offer having been once approved by its board.

On Tuesday night CSN final offer of 603 pence in cash ($12 billion) was out bid by Tata Steel's 608 pence for the acquisition of Corus at the end of ninth-round of the auction.

CSN holds a 3.8-per cent stake in Corus that it had accumulated before making a formal bid for the Anglo-Dutch steel maker in November last year. Tata Steel is looking to acquire all the outstanding shares of the London-listed Corus Group.

CSN said in a statement from Rio De Janeiro that it was entitled to sell 34,072,613 shares of Corus at the final price offered by Tata.