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Corus bid: CSN still stands to gain $520 mn
February 01, 2007 15:06 IST
Brazilian steel maker CSN might have lost the bidding war for Corus to India's Tata Steel but it still stands to gain over $520 million on the virtue of its failure only.
The Latin-American firm would pocket over $400 million by selling over 34 million shares of Corus in its possession, while it is also entitled to receive about $120 million from the Anglo-Dutch steelmaker on the basis of its offer having being once approved by the target company's board.
In a historic auction held on Tuesday night in London, CSN made a final offer of 603 pence in cash (about $12 billion) for acquisition of Corus, but was outbid by Tatas' 608 pence offer at the end of ninth-round of the auction.
While CSN has accepted its defeat in the bidding war it still holds a 3.8 per cent stake in Corus, that it had accumulated before making a formal bid for the Anglo-Dutch steelmaker in November last year.
The Tata-Corus saga
Now, as Tata Steel has emerged a winner for the bidding battle, it is looking to acquire all the outstanding shares of the London-listed Corus Group.
CSN said in a statement from Rio De Janeiro that it was entitled to sell 34,072,613 shares of Corus at the final price offered by Tata, which is worth about 205 million pounds ($402.65) at a price of 608 pence per share.
In addition, CSN is also entitled to receive from Corus an 'incentive remuneration' corresponding to 1 per cent of its final offer of about $12 billion.