Who will eventually sing with Corus?

While CNBC-TV18 learnt that CSN has completed its due diligence of Corus over the weekend and might come out with a firm offer during the week, the Corus management has postponed its EGM until December 20 to allow CSN more time to satisfy pre-conditions.

Analysts suggest that the bid by CSN for Corus is likely to come out sometime during the week. The EGM was supposed to be held on December 4. And CSN, as the highest bidder as opposed to Tata Steel, with a bid of 475 pence has asked Corus to postpone the EGM to December 20, mainly to decide on the strategy going forward to look at all details and come up with an actual offer.

In fact, 475 pence was not an actual offer. And the Brazilian major is looking for more time to come with an actual offer hopefully before December 27. But this should be received by December 20 and then the EGM will be held, where a final vote will be taken on what course of action would follow and over which bid will be the stronger one.

The big factor is the iron ore factor - what Tata Steel can offer Corus is cheap semis and cheap slabs that it would export from either India or Iran as opposed to that what CSN can offer is cheap iron ore that is very important for a steel producer like Corus.

Contd on Pg 2...