Tata Steel [Get Quote] is likely to make a firm bid for Anglo-Dutch steelmaker Corus Group on Friday, which, amid reports of counter-bids from Russian and Brazilian companies, may be higher than the 455 pence a share indicated by the Indian conglomerate on Tuesday.

The Corus shareholders, while not speaking on the issue officially, are also said to be looking for a higher bid.

Russia's largest steelmaker Severstal, and Novolipetsk, its fourth-largest, may launch counter-bids. The possibility of Mittal Steel joining the fray cannot be ruled out either.

Another bid may come from Brazil's Cia Siderurgica National, whose owner, Benjamin Steinbruch, is planning to launch a counter-bid, according to Metal Bulletin, a news website.

The report, however, also quoted the company spokesperson saying, 'It is highly unlikely that Cia Siderurgica National will be interested in Corus.'

When asked for a view on the Tata offer, the spokesperson of Legal & General Investment Management, the third-largest shareholder in Corus with a 3.81 per cent stake, refused to comment.

Standard Life Investments, which holds 7.86 per cent equity, and Barclays PLC (7.02 per cent) are the biggest shareholders in the company. Sources said the Corus brass, who discussed the Tata offer at length on Wednesday, was not averse to the idea.

However, when contacted, the Corus spokesperson said, "We have nothing to say further to Tuesday's announcement."

"Shareholders are expecting a revision on the announced price. This is evident from the fact that the Corus Group stock went up on Wednesday as well," said an analyst. At the time of going to press, the stock was quoting 1.77 per cent higher at 487.50 pence, after touching the day's high of 498 pence.

The analyst said Tata Steel made the preliminary offer to gauge the response of other potential bidders and would be willing to raise the offer by 10-15 per cent if any counter-bid materialised.

Sources said the Corus board might recommend the offer to its shareholders. The coming together of the two companies will result in annual cost savings of about $350 million (nearly Rs 1,582 crore).

However, the Tata Steel spokesperson declined to comment on the final offer on Friday. The Tata Steel stock lost 1.36 per cent on Wednesday to close at Rs 508.70.

Tata Steel's offer is 4.84 times Corus' earnings before interest, taxes, depreciation and amortisation (EBIDTA), based on the UK steel maker's earnings in the 12 months through June 30. 'This is at the top end of the range,' pointed out an analyst. .

However, some analysts said it would be a win-win situation for the Tatas and the Corus Group. Tata Steel will get access to a new market for its products in Western Europe and to some sophisticated technology, especially in the field of long products such as beams for the building industry, and to ultra-shiny flat steel for the automotive sector.

Corus, on the other hand, will have access to cheap iron ore as Tata Steel controls the fifth-largest deposit of iron ore in the world. Meanwhile, International credit rating agency Standard & Poor's put Tata Steel on credit watch with negative implications, saying it could increase its financial risk.

Standard & Poor's credit analyst Anshukant Taneja said the huge cash outflow for the proposed acquisition of Corus would have an adverse impact on its financial risk profile. A successful acquisition, however, could potentially improve the business profile of the merged entity, S& P said.