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| Steel firms in battle over Corus | |
| (about 2 hours later) | |
| Brazilian steelmaker CSN says it has agreed to buy Anglo-Dutch Corus for £4.9bn ($9.6bn), beating an offer from India's Tata Steel made hours earlier. | Brazilian steelmaker CSN says it has agreed to buy Anglo-Dutch Corus for £4.9bn ($9.6bn), beating an offer from India's Tata Steel made hours earlier. |
| Companhia Siderurgica Nacional has agreed to pay 515 pence a share per Corus share, trumping Tata Steel's offer of 500 pence a share. | Companhia Siderurgica Nacional has agreed to pay 515 pence a share per Corus share, trumping Tata Steel's offer of 500 pence a share. |
| A Corus spokesman said the board was recommending that shareholders now accept the CSN offer. | A Corus spokesman said the board was recommending that shareholders now accept the CSN offer. |
| Tata said it was now considering its position after the latest developments. | Tata said it was now considering its position after the latest developments. |
| In early morning trade in London shares in Corus rose 5%, up 25p to 525p. | In early morning trade in London shares in Corus rose 5%, up 25p to 525p. |
| 'Winning combination' | 'Winning combination' |
| A merger of Corus and CSN would create the world's fifth-biggest steel firm, with output of 24 million tonnes annually. | A merger of Corus and CSN would create the world's fifth-biggest steel firm, with output of 24 million tonnes annually. |
| CSN chairman and chief executive Benjamin Steinbruch said: "The strategic impetus for this combination is growth - growth in Brazil, in Europe and for our combined workforces. | CSN chairman and chief executive Benjamin Steinbruch said: "The strategic impetus for this combination is growth - growth in Brazil, in Europe and for our combined workforces. |
| "Our goal is to unlock the value of our iron ore assets through Corus, transforming them into cost-effective, high-quality steel products using Corus' advanced engineering capabilities and its excellent European distribution platform. | "Our goal is to unlock the value of our iron ore assets through Corus, transforming them into cost-effective, high-quality steel products using Corus' advanced engineering capabilities and its excellent European distribution platform. |
| "This is a winning combination for all stakeholders." | "This is a winning combination for all stakeholders." |
| He said a tie-up would enable Corus to secure supply of high quality, low-cost iron ore from CSN's Casa de Pedra mine, one of the largest in the world. | He said a tie-up would enable Corus to secure supply of high quality, low-cost iron ore from CSN's Casa de Pedra mine, one of the largest in the world. |
| He said a deal would also provide Corus with access to increasing quantities of low-cost semi-finished steel. | He said a deal would also provide Corus with access to increasing quantities of low-cost semi-finished steel. |
| 'Strong platform' | 'Strong platform' |
| Corus chairman Jim Leng, who had backed the latest Tata offer on Sunday night, approved the CSN bid on Monday. | Corus chairman Jim Leng, who had backed the latest Tata offer on Sunday night, approved the CSN bid on Monday. |
| "This offer is both higher than the initial proposal by CSN as well as the revised Tata offer of 500p a share," he said. | "This offer is both higher than the initial proposal by CSN as well as the revised Tata offer of 500p a share," he said. |
| CSN Founded in 1941Operational in 1946Privatised in 1993Listed in Sao Paulo and New York8,000 employeesOwns iron ore, limestone and dolomite minesFive plants - two overseas5.8m tons annual steel output | CSN Founded in 1941Operational in 1946Privatised in 1993Listed in Sao Paulo and New York8,000 employeesOwns iron ore, limestone and dolomite minesFive plants - two overseas5.8m tons annual steel output |
| "It is also consistent with our strategic objective of securing access to raw materials, low-cost production and growth markets. | "It is also consistent with our strategic objective of securing access to raw materials, low-cost production and growth markets. |
| "The combination of the two businesses will create a strong platform from which to compete and grow in an increasingly global market." | "The combination of the two businesses will create a strong platform from which to compete and grow in an increasingly global market." |
| If successful in its latest approach, CSN will pay £138m immediately into the Corus Engineering Steels pension scheme and increase the contribution rate to the company's larger British Steel pension scheme from 10% to 12% until March 2009, it said. | If successful in its latest approach, CSN will pay £138m immediately into the Corus Engineering Steels pension scheme and increase the contribution rate to the company's larger British Steel pension scheme from 10% to 12% until March 2009, it said. |
| Tata Steel had earlier said it would fill the $240m (£123m) deficit in the Corus pension scheme immediately and would increase contributions to the British Steel scheme, which is in surplus. | Tata Steel had earlier said it would fill the $240m (£123m) deficit in the Corus pension scheme immediately and would increase contributions to the British Steel scheme, which is in surplus. |
| Increased offers | Increased offers |
| Late on Sunday night Corus had earlier accepted a revised £4.7bn ($9.2bn) takeover offer from Tata Steel. The offer had valued Corus at 500 pence a share. | Late on Sunday night Corus had earlier accepted a revised £4.7bn ($9.2bn) takeover offer from Tata Steel. The offer had valued Corus at 500 pence a share. |
| "Clearly, CSN is able to realise more synergies than Tata," said Rabobank analyst Richard Brakenhoff. | |
| GLOBAL STEEL PRODUCTION 2005 1. Mittal Steel - 49.89 million tonnes2. Arcelor- 46.653. Nippon Steel - 32.914. Posco - 31.425. JFE Steel - 29.576. Shanghai Baosteel - 22.737. US Steel - 19.268. Nucor - 18.459. Corus - 18.1810. Riva - 17.5356. Tata - 4.4 Source: Metal Bulletin Corus share price | GLOBAL STEEL PRODUCTION 2005 1. Mittal Steel - 49.89 million tonnes2. Arcelor- 46.653. Nippon Steel - 32.914. Posco - 31.425. JFE Steel - 29.576. Shanghai Baosteel - 22.737. US Steel - 19.268. Nucor - 18.459. Corus - 18.1810. Riva - 17.5356. Tata - 4.4 Source: Metal Bulletin Corus share price |
| 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. |
| Earlier in the autumn Tata had made an informal £4.1bn approach for Corus, but this was then trumped by CSN going to the Anglo-Dutch firm with a £4.3bn takeover proposal. | Earlier in the autumn Tata had made an informal £4.1bn approach for Corus, but this was then trumped by CSN going to the Anglo-Dutch firm with a £4.3bn takeover proposal. |
| Tata chairman Ratan Tata had said any takeover would have been a "defining moment" for the firm. | Tata chairman Ratan Tata had said any takeover would have been a "defining moment" for the firm. |
| The battle for Corus comes amid growing consolidation in the global steel industry. | The battle for Corus comes amid growing consolidation in the global steel industry. |
| With prices and demand soaring, Mittal Steel - the world's largest steel firm - bought European rival Arcelor for $34bn earlier this year. | With prices and demand soaring, Mittal Steel - the world's largest steel firm - bought European rival Arcelor for $34bn earlier this year. |