Thursday, January 25, 2007

CSN says dispute won't hurt Corus bid

Brazilian steelmaker Companhia Siderurgica Nacional rejected reports on Thursday that a domestic iron ore dispute might damage its chances of winning a bid battle for Anglo-Dutch rival Corus Group.

Companhia Siderurgica Nacional (CSN) has made a 4.9-billion-pound recommended cash bid for Corus, trumping two earlier offers from India's Tata Steel. But many analysts expect Tata to raise its bid again ahead of a January 30 deadline for offers set by Britain's takeover regulator.

The Financial Times reported on Thursday that Brazilian miner Companhia Vale do Rio Doce (CVRD) plans to challenge CSN's ability to supply iron ore to Corus, and that this could damage CSN's chances in the bid battle.

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There fas been speculation that the dispute would take some pressure of Tata to substantially raise their bid for Corus. Whether this gives Tata some leeway remains as speculation.


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