Corus accepts $7.6-billion Tata Steel offer
The Board of Anglo-Dutch steelmaker Corus has accepted a $7.6-billion takeover bid from Tata Steel.
By Agencies |
LONDON: The Board of Anglo-Dutch steelmaker Corus has accepted a $7.6-billion takeover bid from Tata Steel, the two sides confirmed on Friday.
The Board has recommended Tata Steel's offer. We are hopeful that the shareholders will accept it," David Jackson, Director (Communications) of Corus, told an Indian TV news channel.
Tata Group chairman Ratan Tata also confirmed that it has agreed to acquire the European steel company at 455 pence per share, putting the enterprise value of Corus at about $10 billion.
"This proposed acquisition represents a defining moment for Tata Steel and is entirely consistent with our strategy of growth through international expansion," Tata said.
Jackson said the deal comes at the "right time and at the right price" and expressed hope that shareholders as well as trade unions would respond positively to the offer.
Tata is interested in the takeover as it would expand its geographic reach while it would help Corus cut its high production costs. Corus was spawned by the 1999 merger of Dutch firm Hoogovens and British Steel and is the world's ninth largest steel maker, producing around 18 million tonnes per year.
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The Board has recommended Tata Steel's offer. We are hopeful that the shareholders will accept it," David Jackson, Director (Communications) of Corus, told an Indian TV news channel.
Tata Group chairman Ratan Tata also confirmed that it has agreed to acquire the European steel company at 455 pence per share, putting the enterprise value of Corus at about $10 billion.
"This proposed acquisition represents a defining moment for Tata Steel and is entirely consistent with our strategy of growth through international expansion," Tata said.
Jackson said the deal comes at the "right time and at the right price" and expressed hope that shareholders as well as trade unions would respond positively to the offer.
Tata is interested in the takeover as it would expand its geographic reach while it would help Corus cut its high production costs. Corus was spawned by the 1999 merger of Dutch firm Hoogovens and British Steel and is the world's ninth largest steel maker, producing around 18 million tonnes per year.
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ts shares have risen in recent months on speculation the Anglo-Dutch group could face a takeover following the recent creation of Arcelor Mittal.
Tata Steel produced more than five million tonnes in the year to March 2006 and aims to reach 7.5 million tonnes by 2008.
Corus has an annual turnover of $18 billion.
"The Board has recommended Tata Steel's offer. We are hopeful that the shareholders will accept it," David Jackson, Director (Communications) of Corus, told CNTV18 news channel today.
Tata Group chairman Ratan Tata also confirmed that it has agreed to acquire the European steel company at 455 pence per share, putting the enterprise value of Corus at about $10 billion.
"This proposed acquisition represents a defining moment for Tata Steel and is entirely consistent with our strategy of growth through international expansion," Tata said.
Jackson said the deal comes at the "right time and at the right price" and expressed hope that shareholders as well as trade unions would respond positively to the offer.
Tata Steel produced more than five million tonnes in the year to March 2006 and aims to reach 7.5 million tonnes by 2008.
Corus has an annual turnover of $18 billion.
"The Board has recommended Tata Steel's offer. We are hopeful that the shareholders will accept it," David Jackson, Director (Communications) of Corus, told CNTV18 news channel today.
Tata Group chairman Ratan Tata also confirmed that it has agreed to acquire the European steel company at 455 pence per share, putting the enterprise value of Corus at about $10 billion.
"This proposed acquisition represents a defining moment for Tata Steel and is entirely consistent with our strategy of growth through international expansion," Tata said.
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Jackson said the deal comes at the "right time and at the right price" and expressed hope that shareholders as well as trade unions would respond positively to the offer.
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