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Brazil firm makes Corus approach | Brazil firm makes Corus approach |
(about 3 hours later) | |
Brazilian steel group CSN has gone to its Anglo-Dutch rival Corus with a £4.3bn ($8.2bn) takeover proposal. | Brazilian steel group CSN has gone to its Anglo-Dutch rival Corus with a £4.3bn ($8.2bn) takeover proposal. |
Confirming media reports from the end of last month, CSN said joining the two businesses would make "compelling strategic and industrial logic". | Confirming media reports from the end of last month, CSN said joining the two businesses would make "compelling strategic and industrial logic". |
CSN's informal offer is higher than Indian firm Tata Steel's existing £4.1bn formal bid for Corus, which has been accepted by the Corus board. | CSN's informal offer is higher than Indian firm Tata Steel's existing £4.1bn formal bid for Corus, which has been accepted by the Corus board. |
Tata's offer still requires backing from Corus shareholders. | Tata's offer still requires backing from Corus shareholders. |
In a statement Corus said it had received an approach and "a further announcement will be made in due course". | In a statement Corus said it had received an approach and "a further announcement will be made in due course". |
'Global powerhouse' | 'Global powerhouse' |
"A combination of CSN and Corus would create a global powerhouse with market leading positions and exceptional distribution networks across both developed and emerging markets," said CSN chairman and chief executive Benjamin Steinbruch. | "A combination of CSN and Corus would create a global powerhouse with market leading positions and exceptional distribution networks across both developed and emerging markets," said CSN chairman and chief executive Benjamin Steinbruch. |
Earlier reports had valued Tata's approach at £4.3bn, however this offer would be diluted by the inclusion of share options. | Earlier reports had valued Tata's approach at £4.3bn, however this offer would be diluted by the inclusion of share options. |
Without stock options, the CSN proposal values each Corus share at 475 pence, while Tata's offer is equivalent to 455p a share, or £4.1bn. | Without stock options, the CSN proposal values each Corus share at 475 pence, while Tata's offer is equivalent to 455p a share, or £4.1bn. |
However, Tata has reserved the right to come back with a higher bid. | However, Tata has reserved the right to come back with a higher bid. |
All change | All change |
The latest development is a distinct turnaround from the situation in 2002, when Corus made a £2.7bn bid for CSN. | The latest development is a distinct turnaround from the situation in 2002, when Corus made a £2.7bn bid for CSN. |
The steel group later pulled out when its financial performance started to deteriorate. | The steel group later pulled out when its financial performance started to deteriorate. |
CSN describes itself as one of the largest steel firms in Latin America, employing 8,000 people. | CSN describes itself as one of the largest steel firms in Latin America, employing 8,000 people. |
It has overseas operations in the US and Portugal. | It has overseas operations in the US and Portugal. |
Corus employs 47,300 people worldwide, including 24,000 in the UK at plants at Port Talbot, Scunthorpe and Rotherham. | Corus employs 47,300 people worldwide, including 24,000 in the UK at plants at Port Talbot, Scunthorpe and Rotherham. |
It was formed out of the 1999 merger of British Steel and Dutch group Hoogovens. | It was formed out of the 1999 merger of British Steel and Dutch group Hoogovens. |
Also on Friday, shares in United States Steel rose more than 8% as speculation mounted that it was a takeover target for Russian firm Severstal. |
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