Rediff India Abroad
 Rediff India Abroad Home  |  All the sections

Search:



The Web

India Abroad




Newsletters
Sign up today!

Mobile Downloads
Text 67333
Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this Article


Home > Business > PTI > Report


Corus expensive, but worth it: Tata

January 31, 2007 11:46 IST

Tata Group Chairman Ratan Tata on Wednesday asserted that the Corus takeover cost would prove to be worthwhile, even though the group paid much higher than what it had started with.

Prices went up when investors came in and increased the price after Tata's preliminary bid of 455 pence a share and before it was challenged by Brazil's CSN, he said.

"But we have to pay for getting the company... as a prudent management, we had taken a view that we would not go beyond a point... we did not reach that point... had we reached, we would have walked away," Tata said.

He dismissed suggestions that the group had overbid for the acquisition of Corus, saying: "Overbidding or not is subjective when it comes to a judgement call."

Giving an analogy of real estate prices, he said what could have been considered a fair price two years back for a flat may not be the same now and added that steel company prices were only going up.

Tata Steel vice president (finance) Koushik Chatterjee said that the offer puts an equity value of $12.1 billion and enterprise value of $13.65.

Tata Steel's contribution to the bid would be around $4.1 billion, he said, adding that financiers remain the same.

Tatas win Corus takeover battle

The Tata-Corus saga



© Copyright 2007 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.



Advertisement