Tuesday, December 12, 2006

Bidding war for Corus intensifies

SHAREHOLDERS may be in for a bonanza with the battle for steel group Corus intensifying with Brazilian firm CSN yesterday dramatically trumping a takeover offer from Indian giant Tata.

The Corus board backed a 515p a share offer worth £4.9bn from CSN just hours after agreeing a 500p a share deal with Tata, which valued Corus at £4.7bn.

Tata said it was "considering its position" having been ditched by Corus. Shares in the Anglo-Dutch group surged more than 5% to 527p as investors gambled on an escalation of the bidding war.

It left investors in Corus on the verge of a windfall with the share price now more than 160% higher than the 200p of 18 months ago.

Martin Slaney, head of spread betting at GFT Global Markets in London, said, "The market is pricing in further skirmishes as investors speculate that Tata has saved up enough firepower to take on CSN, although talk is of a realistic ceiling of around £5bn, or 550p a share, to any future bids."

Link to full article icWales


Damn, I got rid of my Corus shares when they were worth the price of a "pint of John Smith's"


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