Brazil's CSN Attempting to Steal Corus from Tata Steel

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CSN Says It's Better 'Fit' for Corus Than Tata Steel [Bloomberg]

Summary: The head of IR at Brazilian steelmaker CSN told the press, "Tata is a nice fit for Corus, but we think that we probably are the best fit." India's Tata Steel already bid 455 pence for London-based Corus on Oct 20th, when CSN came in with a bid of 475 pence last week, pending due diligence. A separate Bloomberg report today says Tata called media reports of the firm's board approval to raise its offer "speculative." Shares of Corus traded above 500 pence intra-day, reaching multi-year highs. CSN's IR head commented, "We are ready to grow internationally because we need to complement our domestic market. There will be a lot of synergies between CSN and Corus." With the Corus deal valued in excess of $8b, it would be the second largest of the year behind the $38.3b Mittal-Arcelor takeover. A news report from India says UBS and Goldman Sachs, both advisers to CSN, have taken an 11% stake in Corus.
Related links: Media coverage: Bloomberg and Business Standard. Commentary: Top Industry Groups in 2006: Steel, Telecom • Metal and Mining ETF: A Safer Way to Play Steel • New Van Eck Global Steel ETF • A Steel Industry Primer.
Potentially impacted stocks and ETFs: Corus Group plc (CGA), Companhia Siderurgica Nacional (SID) • ETFs: Market Vectors - Steel (SLX), SPDR Metals & Mining (XME)

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