Takeover panel starts auction process for Tata/CSN in race for Corus |
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Published
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Fri, 26 Jan 2007 18:25
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LONDON (AFX) - The takeover panel has confirmed that the fate of Corus PLC will be decided via an auction to be hold next Tuesday between Indian company Tata and Brazilian steel giant CSN.The Panel told the market that an auction would commence at 16.30 on Jan 30. Tata upgraded its original offer of 455 pence per share to 500 pence per share on Dec 10, whereupon CSN bid 515 pence per share.The auction procedure will consist of a maximum of nine rounds, comprising up to eight rounds in which each offeror is able to lodge a fixed price bid in cash followed by, if the auction procedure has not by then concluded, a final round.In the final round each offeror is able to lodge either a fixed price bid incash or a cash bid worked out via a special formula that allows a bidder to lodge a bid at a set amount in cash more than the other bidder, up to a specified limit.In the first eight rounds of the auction procedure, a subsequent round will only take place if the offeror which has the lower cash bid as at the beginning of that round (or, if at that time the highest cash bids of both offerors are at the same price, either offeror) lodges an increased cash bid in that round.That cash bid must be not less than 5 pence higher than the higher cash bid as at the beginning of that round.newsdesk@afxnews.comgh/tcCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Tata Steel board may give go-ahead to raise Corus bid to 600 pence/shr - report 