CSN to gain $220mn for losing Corus bid

Brazilian steel maker CSN, which had rivalled Tata Group's takeover bid for Corus, will record a net gain of about $100 million from the sale of shares it had accumulated in the Anglo-Dutch firm.

The Brazilian firm would also receive a disengagement fee of about $120 million from Corus as its offer had been approved by the board of the UK-listed firm.

Despite losing the battle for Corus as well as the takeover of US-based Wheeling Pittsburgh in the recent past, the Latin American firm today asserted it remains committed to emerge as a leading global player in the steel space, and would continue with its overseas expansion plans.

As part of its global ambitions, CSN plans to export iron ore to leading consuming markets in Asia, Europe and the Middle-East.

The Sao Paulo-based firm said in a statement it would sell its 3.8% stake in Corus, which it had bought for about $345 million, later this year. The company was outbid by Tata Steel with a winning bid of 608 pence a share in a nine-round auction for Corus held on January 31. It anticipates total proceeds of about $445 million from the sale of these shares at 608 pence a share.

CSN reported a 12% increase in fourth-quarter revenue to $1.26 billion taking the annual net revenue for 2006 to over $4.40 billion. The company said it is aiming at becoming the world's fourth largest iron ore exporter this year after kick-starting its global market foray with the first shipment to Bahrain last month.