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'Tata-Corus deal to perk Indo-UK ties'

Showing his support for the bid, a UK lawmaker of Indian origin urged Corus shareholders to support the Tatas.

india Updated: Jan 07, 2007 17:30 IST
Press Trust of India
Press Trust of India

In a boost to the Tatas' bid for Corus, an influential UK lawmaker of Indian origin on Sunday asked the shareholders of the Anglo-Dutch steel maker to keep in mind the Tatas' high reputation before taking up any rival's offer.

"The Tatas have a reputation going back 100 years... not only in India but outside. Their track record in terms of Tetley too is incredibly high," Lord Karan Bilimoria, Co-Chairman of the Indo-British Partnership, said in New Delhi.

Hoping that Tata succeeds in acquiring Corus, he said if the deal went through, it would be a "huge marker... milestone" in the Indo-UK ties.

Tata and rival bidder CSN have time until January 30 to revise their bids, failing which the UK Takeover Panel would decide the winner through an auction.

Ultimately, the shareholders are going to vote based on what benefits they get. Yet, they should not forget that a deal with Tata would ensure that they are "teaming up with a world-class company," he said.

On Tata Sons Chairman Ratan Tata's comments that the bidding war for Corus was "unfortunate", Bilimoria said it was expected and even Tata must have been warned by his advisors.

In such a deal, its common for rival bids to come up in the last minute, he added.

CSN had submitted a counter bid for Corus in November, after Corus recommended Tatas' offer to its shareholders in October. Since, the two have revised their bids with Tata offering 4.7 billion pounds and CSN 4.9 billion pounds.

However, Bilimoria said in the event of Tata missing out, there would be more opportunities for Indian companies going ahead.

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