Click to play videoDavos: Tata Steel’s bid to acquire Anglo-Dutch steel maker Corus Group to 600 pence a share is second only to Mittal’s bid for Arcelor.
Tata Steel, locked in a takeover battle with Brazil's Companhia Siderurgica Nacional (CSN), will decide on the final pricing of its bid before the January 30 deadline set by the UK Takeover Panel for a definite offer from both suitors.
Most analysts feel that Tata Steel may initially raise its offer to 530 pence per share and depending on CSN's counteroffer, may further increase the offer to 600 pence per share.
Chief Financial Officer, Arcelor-Mittal, Aditya Mittal, however feels that the Corus bid is not over-priced.
At 600 pence a share, Corus will be valued at US$11.1 billion, it said. Corus shares were up one per cent in Friday trading in London at 543 pence (US$10.71).
Tata Steel’s board is also likely to empower Chairman Ratan Tata and Managing Director B Muthuraman to decide on the final offer price.
Corus, which employs 47,300 people worldwide, has been searching for a business partner for a year.
A takeover by either Tata Steel or CSN would create the world's fifth-largest steel company.
It would also continue the consolidation in the global steel industry after Lakshmi Mittal's Mittal Steel Co acquired Arcelor to create a powerhouse that has a 10 per cent share of the market.
(With inputs from agencies)
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