New Delhi: The battleground for Corus reaches its finale. Tata Steel and CSN entered the auction ring for the prized trophy amid reports the bid could go as high as $11 billion.
The nine-round auction called by the UK takeover panel to decide the winner between the two suitors began at 2200 hrs, IST Indian time (1630 hrs GMT) and would end the slugfest that has been on for three months.
Tata Steel had bid $9.2 billion (4.6 billion pounds) against CSN's much higher $9.6 billion (4.9 billion pounds) last month, prompting the UK takeover panel to intervene and pick the winner through open bidding.
Earlier in the day, Tata's Board met to discuss strategy for the auction, besides approving the earnings for the October-December quarter.
According to Reuters’ report, Tata Steel expected to raise its bid and spark an auction with CSN. Tata Steel, which is also due to post third-quarter results in the coming hours, is likely to raise its offer to challenge a 4.9-billion-pound ($9.6 billion) deal agreed between Corus and Brazil's Companhia Siderurgica Nacional.
Britain's takeover watchdog has set a 2300 hrs (IST) deadline for bids and if Tata Steel raises its offer, it would kick-start a rapid-fire auction which could go through as many as nine rounds.
The winner of the pitched battle - which has pushed Corus's share price to seven-year highs - will become the world's fifth-biggest steelmaker.
CSN has agreed a 515-pence-a-share offer for Corus, trumping two earlier bids from Tata Steel. But Reuters reports Corus shares are trading well above that level - they closed at 560 pence on Monday - signaling investors are hopeful of a much higher bid.
Tata Steel is on average expected to report net profit rose 46 per cent to $389.8 million in its fiscal third quarter ended December 31, a Reuters poll of 10 analysts showed.
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