Panel decides open bidding for Corus
The two suitors would start open bidding for acquisition of the Anglo-Dutch steel firm from Monday.Updated: Jan 27, 2007 01:27 IST
Two suitors for UK-based Corus Corporation - the Tatas and Brazilain steel giant CSN - would start open bidding for acquisition of the Anglo-Dutch steel firm from Monday.
As per the option process decided by UK Takeover Panel, the two aspirants would start opening bidding for a total of nine rounds provided the competitive environment continues.
The battle through open bidding could last three days and in case no winner emerges in the eighth round a final ninth round would be conducted for the acquisition of Corus.
As per information given to the Tatas and CSN by the Takeover Panel, there has to be a difference of at least five pence for each round of the bid between the two suitors.
The Takeover Panel swung into action last month after the Tatas' revised bid of 500 pence per share for Corus was topped by CSN's 515 pence bid.
Tata officials were tightlipped while CSN could not be contacted for comments.
Officials of the Takeover Panel have held talks with both Tata Steel and Companhia Siderurgica Nacional (CSN) to reach a formula to settle the takeover.
Tata Steel is expected to raise its current 500 pence a share offer for Corus above CSN's 515p bid. Corus shares closed up on Thursday at 553p.
There have been various reports in the recent past suggesting that Tata Steel was likely to announce its revised bid only by January 30, the last date set by the panel to announce any further bids.
First Published: Jan 27, 2007 00:27 IST