Tata, CSN tussle for Corus may intensify

Corus, for the second time, has deferred a meeting of shareholders to take a call on its suitor.

According to different reports, the final bidder - Tata Steel or CSN - may offer any where up to 550 pence a share although both the rivals are tight-lipped about what they have in store for shareholders.

The adjournment of the December 20 EGM, announced by Corus late last night, should give Tatas more time to muster the support of shareholders.

This is the second time that the shareholders meeting has been put off with the first being the postponement of the December 4 meeting to enable CSN make a formal bid.

This time around, Tata Steel might use the additional time to seek support of the shareholders, sources close to the development said.

Sources said that Tatas want to use the opportunity to hold parleys with shareholder lobbies in order to gain their maximum support for the bid.

Investment bankers, however, are still divided on the prospects of a further hike in the bid with some saying that a deal at around 525 pence per share might not be a bad one and others seeing it go up to as much as 550 pence.

The adjournment holds significant importance as the ball is now in the shareholders' court, and whoever manages to please them could walk away with the deal, they added.