London: Corus' Board recommended Tata Steel's revised bid of 608 pence a share to its shareholders on Monday, saying it considered the new bid to be "fair and reasonable."
In a regulatory filing with the London Stock Exchange Corus said its directors believe that Tata's final offer after the auction process represented best value for shareholders.
The Board intends to recommend unanimously that Corus shareholders vote in favour of the Tata offer at the court meeting and EGM to be announced in due course, it said.
Tata Steel Board welcomed the recommendation by Corus' Board, with Group Chairman Ratan Tata saying "the revised bid deliver substantial additional value to Corus shareholders. At the same time, Tata Steel gains a significant platform to generate additional value."
Corus Chairman Jim Leng said the final offer of 608 pence from Tata was the culmination of a thorough process conducted by the Board to secure both the best value for shareholders as well the right strategic future for Corus.
"Tata and Corus are stronger together and will be able to compete effectively in an increasingly global environment. This combination creates a strong and robust platform for growth that will benefit all stakeholders," Leng said.
Corus said that a circular containing further details of the final offer from Tata would be published shortly. The circular would also contain a revised timetable of events like Court Meeting and EGM, which were adjourned on December 20.
Corus said that its board has reached this decision following both Tata Steel and CSN making their final offers after conclusion of the auction process last night.
CSN's offer of 603 pence is subject to a pre-condition that either Corus shareholders reject Tata's offer or the Tata offer is otherwise withdrawn or lapses.
With PTI inputs
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