Tata Steel may be game to raising its offer for acquiring Anglo-Dutch steekmaker Corus, which has been approached by Brazil's CSN with a better deal, but the Indian conglomerate would wait for CSN to make a formal bid first.
"CSN has made an approach... There is a big difference between both (the offers). We can increase the bid amount...," according to investment banking sources.
Brazil's Cia Siderurgica Nacional SA last week bettered Tata Steel's $8.1 billion bid to take over Corus. CSN offered Corus shareholders 475 pence a share subject to due diligence as against Tata's cash offer of 455 pence.
Tata has already completed the due diligence process and is understood to have readied the money for the take over.
"Let CSN submit its formal offer... we will be deciding over the bid price once we are informed about the counter offer," the source said.
Claiming the Tata group had expected the counter offer well before making the take over bid in mid-October, the source said the group was "well prepared to make a counter offer, if necessary."
"We expected counter bids... and we are prepared for that. We can increase the bid amount if necessary...(Tata Sons and Tata Steel) board will take a decision on that at the earliest," the source said.
A Tata Steel spokesperson refused to comment on the issue.
Meanwhile, CSN is expected to commence the due diligence for making a formal counter offer this week. Corus shareholders are expected to consider Tata's offer at an extraordinary general meeting on scheduled on December 4.
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