Tata Wins Bid for Wire Supplier
Tata Wins Bid for Wire Supplier
John Wolz
Following months of counter bids India'”s Tata Steel won an eight-hour auction to acquire Anglo-Dutch steel and wire producer Corus. Tata outbid CSN of Brazil in the auction organized by the UK”‘s Takeover Panel.
Tata”s winning bid of about GB�6 (US$11.94) per share values Corus at around GB�6.7 billion (US$13.2 billion) including debt.
Tata shares fell more than 10% in Mumbai on the news, which some analysts consider an expensive deal. The new group will be the fifth largest steel maker in the world.
Tata identified the possibility of shipping low cost steel from India to Corus'” European plants for finishing. However, fastener makers in the UK are skeptical that the deal will result in improvements in cold heading wire costs from Corus, Fastener & Fixing Europe editor Phil Matten explained.
Tata and CSN had been in a biding war for Corus for months “but neither could come up with a knock-out offer,” Matten explained. The UK Takeover Panel’s deadlock solution had only been used twice since it was introduced in 2002.
Close to collapse five years ago, Corus shares are now at their highest level in seven years. �2007 FastenerNews.com and Fastener & Fixing Europe
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