Mine spat may hurt CSN bid
The development comes ahead of a widely-expected counter offer by Tata Steel.
By TNN |
MUMBAI: Tata Steel has moved a step closer to win the race for Corus even before announcing a counter offer to top Brazilian company CSN���s 515 pence-per-share bid to take over the Anglo-Dutch steelmaker. Companhia Siderurgica Nacional���s (CSN) campaign seems has suffered a setback after Brazilian mining major Companhia Vale do Rio Doce (CVRD) challenged its ability to export iron ore to Corus, if its bid succeeds. This is because the Casa de Pedra mines-from where CSN said it would supply iron ore instantly to Corus-are at the centre of a legal dispute between the two Brazilian firms.
Now, it���s too early to say if the development would help the Tatas. CSN has denied that this would damage its chances of winning the bidding war. In an emailed response, CSN���s spokesperson in London told ET, ���Should CSN acquire Corus, it will exercise its rights to supply iron ore from its Casa De Pedra mine to all its operations, including those in Europe. There is no basis for this story. There is no change in our position or to our commitment to acquire Corus.���
The development comes ahead of a widely-expected counter offer by Tata Steel. The two suitors have to finalise bids by January 30, the deadline set by UK Takeover Panel. The flare-up between the two Brazilian firms suits Tatas fine. Last November, CSN had saisd it could supply iron ore to Corus from the Casa de Pedra mines.
Now, it���s too early to say if the development would help the Tatas. CSN has denied that this would damage its chances of winning the bidding war. In an emailed response, CSN���s spokesperson in London told ET, ���Should CSN acquire Corus, it will exercise its rights to supply iron ore from its Casa De Pedra mine to all its operations, including those in Europe. There is no basis for this story. There is no change in our position or to our commitment to acquire Corus.���
The development comes ahead of a widely-expected counter offer by Tata Steel. The two suitors have to finalise bids by January 30, the deadline set by UK Takeover Panel. The flare-up between the two Brazilian firms suits Tatas fine. Last November, CSN had saisd it could supply iron ore to Corus from the Casa de Pedra mines.
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