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Wed, Dec 12, 2018, 18:39:29 ---- The fact: 38.682.000 visitors done.

2 Rivals Make Higher Bids for Big European Steel Maker
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Company: TubeNet Admin, Finland
Attn: Juha Haapala

BANGALORE, India, Dec. 11 Attempts by rival steel makers to acquire a big British-Dutch producer, the Corus Group, turned into a bidding war on Monday.

Tata Steel of India increased its offer for Corus on Monday by 10 percent, valuing the company at $9.2 billion, as it sought to stave off a bid by its rival, Companhia Siderrgica Nacional of Brazil.

But within hours, the Brazilian company raised the stakes in turn, offering to pay $9.6 billion for Corus.

Earlier, Corus said its board had approved the higher Tata bid, describing it as a substantial increase over a previous offer. Corus would recommend the revised bid to its shareholders, said James Leng, the chairman of the company, based in London.

Late in the day, Tata indicated only that it was considering a response to the higher offer. We are not commenting right now, a spokesman, Sanjay Choudhry, said.

Tata Steel had said its attempt to acquire Corus was based on a compelling strategic rationale. The revised terms deliver substantial additional value to Corus shareholders, the chairman of Tata Steel, Ratan Tata, said in a statement.

Tata Steel is part of the vast Tata conglomerate, with products as diverse as tea, software, automotive parts, fertilizer and insurance.

Investors, though, did not seem impressed with the Tata Steels new bid, and its share price fell 6 percent in trading in Mumbai on Monday. The stock has dropped since Tata announced its bid in mid-October.

Analysts and investors express concern that Tata, based in Mumbai, is overpricing Corus, whose operating costs are among the highest of any steel maker something that would affect its profitability and its plans to expand in India.

Some specialists raised questions about financing the all-cash deal.

The bidding for Corus comes as steel makers consolidate amid sharply higher costs for raw materials and energy.

Both bids have advantages for Corus. Brazil is a good source of iron ore, a crucial matter in a global market where ore prices have risen in consecutive years.

Tata Steel has access to Indian ore. In addition, its home market is booming from the demand for projects from buyers including infrastructure developers and automakers.

If either bid is successful, the deal will be the second largest this year, behind Mittal Steels $38.3 billion acquisition of the European steel maker Arcelor.


    
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