CSN''s advisors UBS, Goldman Sachs pick up 11 per cent stake in Corus

24 November 2006

Mumbai: Financial services majors UBS AG and Goldman Sachs Group Inc have acquired over 11 per cent stake in the Anglo-Dutch steel major Corus even as Brazilian steel maker entered a takeover battle with India's Tata Steel.

The two firms are also advisors to CSN, which has started the due diligence early this week and is expected to make a formal bid at 475 pence per Corus share.

Companhia Siderurgica Nacional chairman and chief executive Benjamin Steinbruch told the Financial Times of London that he would like to make an offer in under 10 days before December 4 – the day Corus has convened an extraordinary general meeting (EGM) for shareholders to approve the takeover bid from Tata Steel.

CSN said last week it was prepared to pay 475p a share against Tata's offer of 455p a share for Corus.

UBS AG, acting through its business group and legal entities, has picked up 66.12 million shares of Corus Group, representing 7.36 per cent while Goldman Sachs Group Inc acquired 36.06 million shares, aggregating to four per cent stake, according to information available on the Corus website.

CSN already has acquired 3.8-per cent stake in Corus from the open market. Together with the acquisition by the banking groups, the combined holding in Corus now stands at around 15.16 per cent.