Corus postpones EGM by two weeks
The December 4 EGM was convened to decide on shareholder vote on Tata Steel’s bid.
By TNN |
KOLKATA:: Corus Group plc., has decided to postpone a crucial EGM scheduled to be held on December 4 by two weeks, to allow CSN of Brazil more time to make a formal counter bid to Tata Steel’s $8.1 billion offer.
“The board of Corus has decided that it is in the best interests of Corus shareholders to allow CSN some additional time to satisfy its pre-conditions and to determine whether it will put forward a formal offer,” a Corus communiqué issued on Monday said.
The December 4 EGM was convened to decide on shareholder vote on Tata Steel’s bid. The new date for the meeting has been fixed for December 20.
Corus also said it had met CSN officials and co-operate with them to complete a due diligence. CSN has proposed to pay 475 pence for each share of Corus, which is 20 pence more than the price offered by Tata Steel.
For Corus and CSN it would be a second dalliance. The two companies had decided on a merger in July 2002.
The Corus decision comes in the wake of statements given by CSN on November 24 that it would submit a formal bid for Corus by December 4. In light of this, Monday’s announcement by Corus means that the Corus board would like to take up CSN’s bid for consideration before putting it for shareholder approval.
“At this time, the Panel on Takeovers and Mergers has not set a date by which CSN is required to clarify its intentions and either announce a formal offer for Corus or confirm its intention not to do so. In the event that the Panel subsequently sets such a deadline, an appropriate announcement will be made,” the Corus statement added.
“The board of Corus has decided that it is in the best interests of Corus shareholders to allow CSN some additional time to satisfy its pre-conditions and to determine whether it will put forward a formal offer,” a Corus communiqué issued on Monday said.
The December 4 EGM was convened to decide on shareholder vote on Tata Steel’s bid. The new date for the meeting has been fixed for December 20.
Corus also said it had met CSN officials and co-operate with them to complete a due diligence. CSN has proposed to pay 475 pence for each share of Corus, which is 20 pence more than the price offered by Tata Steel.
For Corus and CSN it would be a second dalliance. The two companies had decided on a merger in July 2002.
The Corus decision comes in the wake of statements given by CSN on November 24 that it would submit a formal bid for Corus by December 4. In light of this, Monday’s announcement by Corus means that the Corus board would like to take up CSN’s bid for consideration before putting it for shareholder approval.
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“At this time, the Panel on Takeovers and Mergers has not set a date by which CSN is required to clarify its intentions and either announce a formal offer for Corus or confirm its intention not to do so. In the event that the Panel subsequently sets such a deadline, an appropriate announcement will be made,” the Corus statement added.
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