The uneasy lull in the takeover battle between Tata Steel and CSN for Anglo-Dutch steel maker Corus may end soon, with experts anticipating revised bids from the suitors by the middle of this month.
Legal experts as well as investment bankers expect the two bidders to sweeten their offers, if any, by that time so that the prevailing situation could be factored into the terms of the auction process mooted by the UK Takeover Panel.
The panel has set January 30 as deadline for submitting revised bids, albeit with a rider that if the competitive situation continues "shortly before this date" auction process would be initiated to decide the winner.
If the revised bids are in by mid-Janaury, it would give the Takeover Panel time to factor in the development into the auction process that would be announced by the end of this month, Roy Montague-Jones, Partner and Joint India Head of UK-based international law firm Richards Butler said.
Jones said the Panel could announce an auction a few days before January 30 if the final bids are placed on the table by that date.
On the Panel's reference to a competitive situation existing "shortly before January 30," he said it probably means that this is the date by which matters should be resolved.
Therefore, if both Tata Steel and CSN have bids on the table, the Panel will announce an auction procedure, which has generally lasted two-three days in the past, he said.
The exact terms and conditions of an auction are set by the Takeover Panel in discussion with all parties involved, Jones said.