<b>Tata-Corus</b>: Tata to start share buy, stock zooms 7%

On the heels of its winning bid of 608 pence a share for Corus Group, Tata Steel said it plans to buy shares of the Anglo-Dutch company from the market today.

The Corus stock zoomed 7% to 602 pence on the London Stock exchange in early deals today.

Standard Life Investments said on Wednesday it sold its entire 7.5% stake in Corus after Tata Steel won a bid battle for the Anglo-Dutch steelmaker with a pound 6.2 billion offer or 608 pence per share in cash.

"Tatas have now paid a fair price. We are happy with the outcome," David Cummings, head of UK equities at Standard Life Investments,  said in a note.

The Indian steel giant said in a regulatory filing with the London Stock Exchange that it intends to acquire Corus shares from the market at up to 608 pence in cash per share - its winning bid that trumped the 603 pence offer from rival bidder CSN at the end of a nine-round auction early today.

Tata Steel asked Corus shareholders wishing to sell their shares today to contact its designated corporate brokers at ABN Amro and Deutsche Bank.

The company expects the transaction to close around the middle of March 2007.