Arcelor lost, SeverStal now seen eyeing Corus

LONDON: Russian steel firm SeverStal is mulling a bid for Anglo-Dutch rival Corus, just days after SeverStal’s merger attempt with Arcelor was derailed, dealers said on Wednesday. Traders reported talk that a consortium led by SeverStal was considering a bid for Corus at 520 pence a share.

“Obviously with the fact that Mittal and Arcelor have decided to get together, the feeling was that SeverStal and others now are going to start looking at consolidation,” said a trader. Arcelor accepted a takeover offer earlier this week from Mittal Steel. The latest speculation sent Corus shares up as much as 6.2% to a six-week high of 455p.

A SeverStal spokeswoman in France declined to comment on the talk. “We are considering our options and will announce a decision when it is taken,” she said. Corus declined to comment on rumours of a bid from an unidentified suitor. The stock fell back from the session peak to trade up 3.4% at 442-3/4p and 3.7% higher in Amsterdam. Analysts said there was potential for more merger activity in the sector.

“Whoever was going to be left by the wayside on the Arcelor deal is definitely going to continue to look to consolidate and obviously Corus would be a target there,” said one analyst at an investment bank. A $40-bn deal was also recently revealed by Phelps Dodge to buy Canada’s Inco and Falconbridge, creating the world’s largest nickel miner and largest publicly-listed copper producer.