Thursday, October 05, 2006

Corus shares jump amid reports of Tata talks

Shares in Corus rose 13 percent in early trading on Thursday after Indian newspaper reports that Tata Steel Ltd. was in talks to buy the Anglo-Dutch steel maker for up to $10.6 billion.

Corus would not comment on the reports, which also boosted shares in other European steel companies such as Salzgitter AG and ThyssenKrupp AG .

The Times of India newspaper reported, "Even as Tata Steel had officially denied any takeover plans, there is mounting speculation that the Tatas are in talks to acquire a majority holding in the company (Corus) for anything between $8-$9 billion (4.2-4.8 billion pounds)."

The Business Standard newspaper valued the takeover bid at $10.6 billion (5.6 billion pounds) and said, again quoting unnamed sources, Tata Steel might offer about 580 pence per share to Corus shareholders.

Link to full story 


It's only a short time since Corus was linked with Evraz, now it would appear that the Indian steel giant, could be looking to gain a foothold in Europe. If a takeover was to go ahead it would put the group well in to the "first division", as the fifth largest steel group in the world.


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