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| Corus accepts Tata takeover bid | Corus accepts Tata takeover bid |
| (10 minutes later) | |
| Anglo-Dutch steel firm Corus has accepted a £4.1bn ($7.7bn) takeover offer from Indian rival Tata Steel. | Anglo-Dutch steel firm Corus has accepted a £4.1bn ($7.7bn) takeover offer from Indian rival Tata Steel. |
| The final details are now being agreed and a formal announcement is expected around 7am today the BBC has learned. | |
| The deal is the largest Indian takeover of a foreign company and will create the world's fifth-largest steel group. | The deal is the largest Indian takeover of a foreign company and will create the world's fifth-largest steel group. |
| Corus declined to comment. Formed by the 1999 merger of British Steel and Dutch group Hoogovens, it employs 47,300 worldwide and 24,000 in the UK. | Corus declined to comment. Formed by the 1999 merger of British Steel and Dutch group Hoogovens, it employs 47,300 worldwide and 24,000 in the UK. |
| Changing of the guard | Changing of the guard |
| In 2005, Tata Steel was only the world's 56th biggest steel producer and its takeover of Corus represents its first expansion outside of Asia. | In 2005, Tata Steel was only the world's 56th biggest steel producer and its takeover of Corus represents its first expansion outside of Asia. |
| Tata's a very big group, got a very good reputation, it's not fly by night Denis MacShaneRotherham MP href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23430/one_month.stm" class="">Corus share price | |
| "It's the changing of the guard on a global scale," said BBC business editor Robert Peston. | "It's the changing of the guard on a global scale," said BBC business editor Robert Peston. |
| "Once upon a time, Corus was called British Steel and was a sprawling British industry. Now it's to be taken over by an Indian company." | "Once upon a time, Corus was called British Steel and was a sprawling British industry. Now it's to be taken over by an Indian company." |
| Some analysts said they expected the move by Tata to spark a takeover war. | |
| Severstal, the Russian steel giant controlled by Alexei Mordashov, is among those who must decide whether to launch a hostile bid. | |
| Analysts broadly welcomed the deal, but warned that there were risks. | Analysts broadly welcomed the deal, but warned that there were risks. |
| The biggest one is said to be that if there is an economic downturn over the coming years, Tata Steel might have difficultly paying off the £1bn of debts it is taking on to buy Corus. | |
| In those circumstances there might be dangers for Corus' pension fund, which has 166,000 members in the UK. | In those circumstances there might be dangers for Corus' pension fund, which has 166,000 members in the UK. |
| Increasing steel consolidation | Increasing steel consolidation |
| Denis MacShane, the MP for Rotherham and chairman of the Steel Group of MPs, told the BBC he was positive about the deal, which he said he assumed would "now go through successfully". | Denis MacShane, the MP for Rotherham and chairman of the Steel Group of MPs, told the BBC he was positive about the deal, which he said he assumed would "now go through successfully". |
| "I've been urging Corus to look for a big global energy tie-up because to be a player on the steel industry worldwide, you've got to be a world player, and India, China, that's where a lot of the growth is going," he said. | "I've been urging Corus to look for a big global energy tie-up because to be a player on the steel industry worldwide, you've got to be a world player, and India, China, that's where a lot of the growth is going," he said. |
| "Tata's a very big group, got a very good reputation - it's not fly by night. They certainly say they're going to look after pensions and pay, so it's positive from that point of view." | "Tata's a very big group, got a very good reputation - it's not fly by night. They certainly say they're going to look after pensions and pay, so it's positive from that point of view." |
| The takeover comes amid growing consolidation in the global steel industry. | The takeover comes amid growing consolidation in the global steel industry. |
| With both prices and demand soaring this year, led by strong demand from China, Mittal Steel - the world's largest steel firm, with headquarters in the Netherlands - bought European rival Arcelor for $34bn back in the summer. | With both prices and demand soaring this year, led by strong demand from China, Mittal Steel - the world's largest steel firm, with headquarters in the Netherlands - bought European rival Arcelor for $34bn back in the summer. |
| Tata Steel is part of the wider Tata group, which has business interests ranging from carmaking to Tetley's tea. | Tata Steel is part of the wider Tata group, which has business interests ranging from carmaking to Tetley's tea. |