Rediff News
All News

NewsApp (Free)

Read news as it happens
Download NewsApp  » Business » Corus bid: CSN still stands to gain $520 mn

Corus bid: CSN still stands to gain $520 mn

Source: PTI
February 01, 2007 15:06 IST
Get Rediff News in your Inbox:

Brazilian steel maker CSN might have lost the bidding war for Corus to India's Tata Steel but it still stands to gain over $520 million on the virtue of its failure only.

The Latin-American firm would pocket over $400 million by selling over 34 million shares of Corus in its possession, while it is also entitled to receive about $120 million from the Anglo-Dutch steelmaker on the basis of its offer having being once approved by the target company's board.

In a historic auction held on Tuesday night in London, CSN made a final offer of 603 pence in cash (about $12 billion) for acquisition of Corus, but was outbid by Tatas' 608 pence offer at the end of ninth-round of the auction.

While CSN has accepted its defeat in the bidding war it still holds a 3.8 per cent stake in Corus, that it had accumulated before making a formal bid for the Anglo-Dutch steelmaker in November last year.

The Tata-Corus saga

Now, as Tata Steel has emerged a winner for the bidding battle, it is looking to acquire all the outstanding shares of the London-listed Corus Group.

CSN said in a statement from Rio De Janeiro that it was entitled to sell 34,072,613 shares of Corus at the final price offered by Tata, which is worth about 205 million pounds ($402.65) at a price of 608 pence per share.

In addition, CSN is also entitled to receive from Corus an 'incentive remuneration' corresponding to 1 per cent of its final offer of about $12 billion.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2020 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Moneywiz Live!