CSN meets Corus pension trustees
CSN has begun talks with Corus pension trustees, who were reported to be in favour of Tata Steel.
By PTI |
LONDON/KOLKATA: Companhia Siderurgica Nacional (CSN) on Tuesday started discussions with Pension Fund Trustees of its takeover target Corus, as more bankers evinced support for the Brazilian firm's bid while original bidder Tata Steel remained tight-lipped on matching the counter offer.
A top Tata Steel official, however, said that their bid was valid but did not respond to queries on whether the Indian company would match the rival bidder as believed in the merchant banking circles.
"We have made an offer for Corus on October 20. That remains valid," Tata Steel deputy managing director T Mukherjee told reporters on Tuesday.
A top Tata Steel official, however, said that their bid was valid but did not respond to queries on whether the Indian company would match the rival bidder as believed in the merchant banking circles.
"We have made an offer for Corus on October 20. That remains valid," Tata Steel deputy managing director T Mukherjee told reporters on Tuesday.
| Tata had committed to fund pension schemes in the UK -- a proposal that won the support of the trustees. The Indian steel giant had promised to pump in 126 million pounds to plug the deficit in one of the pension schemes, but would require consent of holders of 75 per cent shares when the issue of their bid comes up before shareholders. |
A CSN official, in the meanwhile told the media, that the Brazilian company had opened discussions with the Trustees of the Corus Pension Funds, who were reported to be in favour of Tata Steel.
Sources close to the development said that UBS, the joint broker to the Brazilian firm, had evinced interest in joining the syndicate of banks for financing the deal and so was Dutch banking major ING.
The renewed activities of CSN came in tandem with Corus deferring the Extraordinary General Meeting of shareholders by over a fortnight to December 20 to enable the Brazilian firm complete the ongoing due-diligence exercise and make a formal bid.
Barclays, Goldman Sachs and BNP Paribas were part of the original syndicate to arrange loan for the proposed take over, while ING Bank is believed to have joined the league.
Sources close to the development said that UBS, the joint broker to the Brazilian firm, had evinced interest in joining the syndicate of banks for financing the deal and so was Dutch banking major ING.
The renewed activities of CSN came in tandem with Corus deferring the Extraordinary General Meeting of shareholders by over a fortnight to December 20 to enable the Brazilian firm complete the ongoing due-diligence exercise and make a formal bid.
Barclays, Goldman Sachs and BNP Paribas were part of the original syndicate to arrange loan for the proposed take over, while ING Bank is believed to have joined the league.
CSN officials confirmed opening of discussions with the pension trustees, but declined to comment further on the talks.
CSN's talks with the trustees is significant, given the reported doubts they have about the financial strength of the Brazilian company to fund the pension commitments.
However, CSN officials reiterated that the company intends to match the terms recently agreed between Tata and the pension trustees, whose support is considered crucial for the takeover.
Tata had committed to fund pension schemes in the UK -- a proposal that won the support of the trustees. The Indian steel giant had promised to pump in 126 million pounds to plug the deficit in one of the pension schemes, but would require consent of holders of 75 per cent shares when the issue of their bid comes up before shareholders.
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