Tata Steel Confirms Takeover Interest in Corus

Posted 05 October 2006 @ 01:40 pm EET     Print     Reprint     E-Mail     Comments

LONDON (AP) - India's biggest private steel firm Tata Steel has confirmed that it is mulling a possible takeover of Anglo-Dutch steel giant Corus Group.

"Given recent industry consolidation, Tata Steel is reviewing a number of global opportunities," Tata said in a statement, which was prompted by media speculation surrounding Corus.

"In this context, Tata Steel is evaluating various opportunities including Corus."

"However, there can be no certainty that an approach will be made and, if made, that it will result in an offer for Corus."

According to media reports in India on Thursday, Tata Steel was in talks to acquire Corus in a deal thought to be worth 5.5 billion pounds (8.16 billion euros, 10.37 billion dollars).

At such a price, it would be the most expensive foreign acquisition by an Indian company.

Investors welcomed Thursday's news, sending shares in Corus surging by 10.0 percent to 448.25 pence in morning trade, while London's FTSE 100 index of leading shares won 0.73 percent to 6,010.00 points. The combined group would be among the top ten steel industry players in the world in terms of output.

Corus is the world's ninth largest steel maker and produces around 18.0 million tonnes of steel per year. Tata Steel manufactures about 7.0 million tonnes.

Corus shares have raced ahead in recent weeks on speculation that the group could face a takeover bid following the recent merger between Mittal Steel and Arcelor.

Recent media reports have also linked the Anglo-Dutch company with a possible takeover from Russian steel group Evraz.