'Tata may sweeten bid for Corus'

According to investment banking sources, the revised offer could be made after CSN makes a formal bid.

Tata Steel may be game to raising its offer for acquiring Anglo-Dutch steelmaker Corus, with investment banking players speculating a move to this effect once Brazil's CSN makes a formal counter offer for the UK-based company.

HT Image

"The revised offer could be made after CSN makes a formal bid," according to investment banking sources.

Tatas, however, remained tight-lipped, declining to comment on their next move.

Brazil's Companhia Siderurgica Nacional SA, which last week bettered Tata Steel's USD 8.1 billion bid to take over Corus, has already started the due diligence process ahead of launching a formal bid.

CSN offered Corus shareholders 475 pence a share subject to due diligence as against Tata's cash offer of 455 pence.

Tata has already completed the due diligence process and is understood to have readied the money for the take over.

The Tatas are likely to decide over the bid price once they are informed about the counter offer, the source said.

The source claimed that Tata group had expected the counter offer well before making the take over bid in mid-October.

Corus shareholders are expected to consider Tata's offer at an extraordinary general meeting on scheduled on December 4.