Tata Steel shares dip on Corus deal concerns
Shares of Tata Steel plunged by over 7 per cent on concerns in the market that the 11.3 billion dollar Corus deal could stretch its balance sheet.india Updated: Jan 31, 2007 11:38 IST
Shares of Tata Steel on Wednesday plunged over 7 per cent or Rs 38 on the bourses in the first few minutes of trade, on concerns in the market that the 11.3 billion dollar Corus deal could stretch its balance sheet.
Tata Steel share opened lower by Rs 20.30 or 3.91 per cent at Rs 491 on the BSE and dropped to as low as Rs 481.20.
Over 20 lakh shares changed hands within the first 10 minutes of trading on both the bourses.
Tata Steel shares, which had been in the green for the past week, had gained nearly 2 per cent or Rs 10.05 on Monday to close at Rs 519.30 on the BSE.
Tata Steel has agreed to buy Corus at 608 pence a share that values the Anglo-Dutch company at 11.3 billion dollars, while the enterprise value could go up to 13 billion dollars.
Just before the market opened, brokerage house CLSA downgraded Tata Steel to 'sell' from 'outperformer', while global rating agency Standard and Poor's said that deal could be a stress on Tata's financial profile.