Printer Friendly

CSN to use pounds 4bn loan for bid.

The Brazilian steel group making a rival bid for steel group Corus, will fund the takeover with a pounds 4 billion loan.

Goldman Sachs, BNP Paribas, and Barclays are reported to have put in place the non-recourse loan for Companhia Siderurgica Nacional (CSN).

It is believed CSN would also inject up to pounds 1 billion of its own equity.

CSN announced its 475 pence per share offer for the British steelmaker late on Friday, trumping the agreed 455 pence per share offer made by India's Tata Steel group.

Tata Steel owner Ratan Tata said he had been surprised by the rival offer, which throws his group's agreed takeover into jeopardy.

Mr Tata was being interviewed by a national newspaper when he first heard of CSN's bid, which values Corus at pounds 5.3 billion. Tata's offer is currently worth pounds 5.1 billion and both offers include around pounds 1 billion of debt.

Moments before the news broke, Mr Tata had spoken of his plans to integrate Corus into his family-owned firm and the prospect of selling British-made steel in Asia.

Mr Tata said his group had no contingency plan for a counter-offer, news of which he described initially as "interesting".

He said: "Corus told us that this probably was not going to happen," refusing to give any indication of Tata's next step.

An Indian newspaper has suggested that Tata Steel is planning boost its offer this week. A senior Tata official in New Delhi declined to comment.

The CSN offer, which is subject to due diligence and finalisation of funding, means steelmakers from two of the world's emerging economic superpowers - India and Brazil - could slug it out for control of Corus as they seek to gain ground on number-one steelmaker Arcelor Mittal.
COPYRIGHT 2006 Birmingham Post & Mail Ltd
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Business
Publication:The Birmingham Post (England)
Date:Nov 20, 2006
Words:293
Previous Article:CALA ups margins to offset dip.
Next Article:Brown 'blocks' Lyons report; Page 11 Comment.
Topics:


Related Articles
CSN set to make pounds 4.5bn Corus bid.
Barclays raise offer for ABN.
PROFITABLE HSBC IN pounds 12.5bn CALL.
Lloyds posts pounds 4bn loss and blames HBOS.
Bank 'may split' to speed repayments.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters