Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

India's takeover of British Steel as Corus backs Tata's takeover bid

Companies / Strategic News Oct 20, 2006 - 04:20 AM GMT

By: Nadeem_Walayat

Companies

Reports say that Corus, UK based steel giant, has backed Tata's $9 billion take over bid. According to the Financial Times , the board of Corus, the Anglo-Dutch steel maker, has recommended 5.1 billion pound takeover bid to the shareholders.

And the report says that Corus will make a statement about this, possibly as soon as Friday. The move will end the chances of any potential counter-bidders for the world's eighth biggest steel maker. Novolipetsk and Severstal, two Russian steel companies, and CSN, a Brazilian steel maker, are thought by some steel industry observers to be interested in making a counter bid.


Corus shares have been trading at levels higher than Tatas' proposed bid price of 455 pence a share since the offer was announced. This was largely on expectations that another bidder will attempt to trump Tata Steel's deal, but such a move was unlikely since Corus has been exploring for a buyer for most of this year and has previously talked to nearly all potential candidates.

The deal, if clinched, would make Tata Steel the world's sixth largest steel maker and enhance the Indian company's capacity to 23 million tonnes a year from just 5 million tonnes at present.

Many steelworkers who took advantage of Corus's Sharesave scheme - buying up to £150 worth of shares a month with a "no lose" guarantee - purchased shares as low as 19p each. But this week, partly due to Tata's audacious £4.1bn (£5.1bn if you count Corus's £1bn debts) bid for the steel firm its shares have been trading as high as £5 each, a rise of more than 400%.

Indian steel companies flush with profits from record steel prices have been on a spending spree across the world buying up steel producing capacity.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


30 Oct 06, 03:24
Re: India's takeover of British Steel as Corus backs Tata's takeover bid
Hi All,

Here are some interesting facts about the transaction.

As found in the internet

Cheers

Pete

Corus Group Takeover In London


When I read the news of ninth ranked Corus take over by 56th ranked Tata Steel, first thing that struck me was that majority of the business for the merged company shall be from Europe and this new entity may be required to pay most of the taxes in Europe.


On searching the sites and studying the Corus press release many startling information was uncovered not disclosed by our press.


[The Acquisition will be made by Tata Steel UK, a wholly-owned indirect subsidiary of Tata Steel, and will be implemented by way of a scheme of arrangement under section 425 of the Companies Act 1985.]


1. Wholly owned Tata Steel UK would buy Corus Group, not Tata India. So it is not an Indian take over but a British company taking over another British company. Money will be pumped into TS UK from India and it shall pay all taxes in UK.


2. Takeover process in unfinished. Shareholders of Corus Group have raised objections and may like more money than presently agreed.


3. Tata Steel UK subscribing to UK laws means foreign nationals will acquire shares in it son hold majority or near majority.


>> This is just one illustration of why I rate Manmohan Singh as Quack. I repeatedly opposed the India takeover code in 1995-6 formulated by Bhagwati Committee.


India allowed only 1% acquisition of shares by NRIs in a year and collectively all NRIs could take 5% share in an Indian company. In just one transaction $8billion is pumped in to UK economy.


Manmohan Singh and ABV governments made takeovers very difficult for NRIs and foreign companies. Thus India has lost opportunities to invest bulk infusion of capital and technologies over 15 years in India.


Wouldn’t it been better if Corus Group invested $4b Indian to take over Tata Steel in India and pay all taxes also?


As GOI he ought to have preferred inflows of capital and with it technology and marketing resources. Take over Reliance Petroleum or even Maruti would have inducted well over $100b to $200b in to Indian economy over 15 years accelerating development, boosting exports, creating jobs and generating taxes to the government.


Manmohan Singh Government is not governing India but is governed by Ambani’s and Tatas.


[The Acquisition will be made by Tata Steel UK, a wholly-owned indirect subsidiary of Tata Steel, and will be implemented by way of a scheme of arrangement under section 425 of the Companies Act 1985.]


http://www.corusgroup.com/file_source/staticfiles/functions/financial...


14. Financing


[The Acquisition will be funded by a cash contribution by Tata Steel to Tata Steel UK to the extent of £1,836 million. In addition, Standard Chartered Bank has provided subordinated debt financing to the extent of £196 million to Tata Steel UK. To finance the balance of the consideration due under the Acquisition, Tata Steel UK has in place senior, mezzanine bridge and working capital loan facilities of a total aggregate amount of £3,300 million (comprising senior term loan facilities of £1,600 million, a £350 million senior revolving credit facility and a £1,350 million mezzanine bridging loan facility), which have been jointly arranged and fully underwritten by Credit Suisse, ABN AMRO and Deutsche Bank. These debt facilities will also be used to refinance the majority of the existing debt of the Corus Group (including, it is currently anticipated, the existing public debt), provide working capital for the Corus Group after completion of the Acquisition and pay certain
fees and expenses associated with the Acquisition.


ABN AMRO and Deutsche Bank, as joint financial advisers to Tata Steel and Tata Steel UK, are satisfied that sufficient resources are available to satisfy in full the consideration payable to Corus Shareholders under the terms of the Scheme. Further information on the financing of the Proposals will be set out in the Scheme Document.


Under the agreement for the provision of the debt facilities, Tata Steel UK has agreed, save as may be required by the Panel or the Court, not to waive, amend, withdraw or agree not to enforce any material term or condition of the Scheme in any material respect without the prior consent of the agent for each debt facility agreement.]


[The Scheme will be governed by English law. The Scheme will be subject to the applicable requirements of the Takeover Code, the Takeover Panel, the London Stock Exchange, the UK Listing Authority and the Amsterdam Stock Exchange.]



owain michael williams
18 Jun 08, 07:59
british steel shares

i have some bsc shares and would like to sell them,how do i go about it.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules