Steel sale

The board of Anglo-Dutch steel producer Corus has approved a UK£ 4.3 billion (US$ 8.04 billion)acquisition bid from India-based Tata Steel but the deal has yet to be accepted by shareholders. Tata’s offer of UK£ 4.55 (US$8.51) per share is based on a +26.2% premium on Corus’ average share price in the last 12 months. However, Corus’ shares rose to UK£ 4.74 (US$ 8.86) following the announcement, indicating a higher offer may be required.

If the merger goes ahead, the new company will be the world’s fifth largest steel producer with a combined output of 22.5 million tonnes and will be the largest ever foreign investment by an Indian company.