Corus gives CSN more time to bid

The Corus Group has postponed a shareholder meeting on the proposed takeover by Tata Steel by two weeks to give its other suitor, Brazil's Companhia Siderurgica Nacional (CSN), more time to launch a formal bid.

Corus postponed the extra-ordinary general meeting (EGM) from December 4 to December 20 as it thought it was "in the best interests of Corus shareholders to allow CSN some additional time to satisfy its pre-conditions and determine whether it will put forward a formal offer."

The shareholders were supposed to meet on December 4 to consider the Tata Steel bid of 455 pence a share. The Tata Steel bid was approved by the Corus board, as well as the pension fund, on October 20.

Analysts said the postponement meant CSN was in no position to complete due diligence for its informal bid by the end of this week as it had claimed last week. Also, it showed that Corus was serious about getting the best price.

The announcement has sent the Corus stock down. The stock was trading at 498.50 pence, 1.29 per cent lower than the previous close, at the time of going to the press.

The Brazilian company informed the Corus board that it needed more time to look at the books of the Anglo-Dutch steel-maker for launching a formal bid.

An investment banker tracking the developments said Corus would announce its financial results for the third quarter on Wednesday and this would help CSN have better guidance on whether to launch a firm offer.

Corus today noted that the Takeover Panel had not set a date by which CSN was required to make clear its intentions.

"In the event that the panel subsequently sets such a deadline, an appropriate announcement will be made," the company said.

CSN is also expected to meet Corus Group pension trustees this week to discuss pension arrangements for workers. The meeting assumes significance as the backing of pension trustees is crucial for the ultimate outcome of the CSN move.