Mexican stand-off situation over Corus
Nearly two hours into the auction,the bid for Corus appeared more like a Mexican stand-off with the two suitors, Tata and CSN, failing to come up with a bid.
By PTI |
LONDON: Nearly two hours into the auction,the bid for Corus appeared more like a Mexican stand-off with the two suitors, Tata and CSN, failing to come up with a bid.
Sources in the know of the development said bids were yet to come through the auction process, as the rivals waited for the other to blink first.
Analysts tracking the process said that the two bidders were delaying their offers to give minimum possible reaction time to the other.
This is also meant to keep the price as low as possible,as more the bidding round, the higher price they would have to quote.
If the auction stretches to the maximum nine rounds, the price could go beyond 600 Pence per share, valuing Corus up to over $11 bn, analysts said.
They, however, said it may not be a surprise if one of the two suitors come up with a much higher bid in the first round itself pre-empting the other.
Sources in the know of the development said bids were yet to come through the auction process, as the rivals waited for the other to blink first.
Analysts tracking the process said that the two bidders were delaying their offers to give minimum possible reaction time to the other.
This is also meant to keep the price as low as possible,as more the bidding round, the higher price they would have to quote.
If the auction stretches to the maximum nine rounds, the price could go beyond 600 Pence per share, valuing Corus up to over $11 bn, analysts said.
They, however, said it may not be a surprise if one of the two suitors come up with a much higher bid in the first round itself pre-empting the other.
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