| Tata-Corus: SWOT Analysis |
| BS Research Bureau / Mumbai October 20, 2006 |
| Corus has accepted the Tata Steel offer for 100% buyout at 455 pence/share although the offer price is below the market price. The acquisition now catapults Tata Steel to the 5th position globally, but with little immediate benefits visible. A CLSA report, issued a day before the formal announcement, expresses concerns on likely dilution, integration issues, longer-term opportunity loss to weight on the stock price in the near-term. "The recommended offer price of 455 pence/share was, however, +10% off yesterday's intra-day high and well below the 580p suggested by some media reports. "Effective market cap implied is $7.6 billion, EV is $10 billion. While the EV/t of $512/t may appear attractive, given Corus |
