125485 Investors following Tata Steel. Share this News with them.
0
Like this story, share it with millions of investors on M3
Corus: better fit v/s better bid
Reports suggest that Tata Steel has called an unscheduled board meeting on Thursday to discuss the fallout of CSN's counter offer for Corus. But what are CSN's chances compared to Tata Steel and who has the edge? CNBC-TV18 reports on how the two competitors stack up.
Reports suggested that Tata Steel has called an unscheduled board meeting on Thursday to discuss the fallout of CSN's counter offer for Corus. However Tata Steel has denied reports on the Board meet.
But what are CSN's chances compared to Tata Steel, and who has the edge? CNBC-TV18 reports on how the two competitors stack up. money
Money talks - but a higher price is not the only arrow in CSN's quiver. The Brazilian steel maker has been buying Corus stock to shore up ammunition. On Thursday, November 16, a day before it counter bid on Corus, CSN bought a 2.33% stake in the Anglo-Dutch steel maker through a subsidiary company Supernova Acquisitions at 472 pence a share. It's total stake now stands at 3.8%.
Interestingly, its bankers also hold stakes in Corus. Barclay owns 4.7% and Goldman Sachs another 2% with UBS. This 6.7% could likely back CSN in its chase for Corus - unless of course, investment banking chinese walls come to Tata's rescue.
Add to this list - Standard Life Investments, Corus' single largest shareholder at 7.9%. Standard Life has made it clear that it thinks of Tata's offer as too low. So unless the Tatas substantially up their bid, this shareholder may not be in favour either.
Potentially, 18.4% of Corus' shares are working in CSN's favour, though that's not all that it has to offer. While India's leaning against ore exports, Brazil, the largest iron ore exporter in the world, is more liberal. And just like Tata Steel, CSN is also tempting Corus with low cost ore from its world's largest Casa de Pedra mine and access to emerging markets.
Add to this list - Standard Life Investments, Corus' single largest shareholder at 7.9%. Standard Life has made it clear that it thinks of Tata's offer as too low. So unless the Tatas substantially up their bid, this shareholder may not be in favour either.
