Anglo-dutch Steel Maker Corus Has Recommended Tata Steel's Take-over Bid
The deal would be the largest foreign takeover by an Indian company, and would follow Mittal Steel's $31 billion (USD) acquisition of Arcelor earlier this year.
If the deal is approved, both companies will have to issue a statement to the London Stock Exchange.The Corus union says it has no problem with Tata Steel's takeover of Corus provided there are no lay-offs. A bid proposal of 455 pence per share has been recommended by Corus - this means the Tatas would have to shell out $7.7 billion to buy Corus. Tata is interested in the takeover as it would expand its geographic reach while it would help Corus cut its high production costs. Corus was spawned by the 1999 merger of Dutch firm Hoogovens and British Steel and is the world's ninth largest steel maker, producing around 18 million tonnes per year. Its shares have risen in recent months on speculation the Anglo-Dutch group could face a takeover following the recent creation of Arcelor Mittal. that the final details were still being discussed, and a formal agreement was expected on Friday. A spokeswoman for Corus Group declined to comment on the report. The company on Tuesday confirmed it received a takeover approach from India's biggest private steel firm. Tata Steel produced more than five million tonnes in the year to March 2006 and aims to reach 7.5 million tonnes by 2008.
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