Rediff News
All News

NewsApp (Free)

Read news as it happens
Download NewsApp
Rediff.com  » 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.
SHARE THIS STORY 

Moneywiz Live!