Tata Takes On Corus $10billion Deal

[joey]

sALIENT FEATURES as i just saw in tv a whole conference from london with DELHI/CALCUTTA/MUMBAI connected via video conferensing.
1> Tata have done bid, Corus have accepted it at 455 pence per share.Tata have offered a 6% PREMIUM to their shareholders.the management has given go ahead govt has its UPTO SHAREHOLDERS TO DECIDE NOW.
2> TATA IS 56TH COMPANY WITH THIS TAKEOVER IT WILL BE 5TH IN WORLD and within 2011 with 40MILLION TONNE PER YEAR IT'L likely be SECOND or third.
3> new port being setup in Orissa to connect Port Alberto.
4> Jamshedpur factory to have 10Mtonne capacity by 2010.
5> This acquisition wont HINDER the three GREEN field project by TISCO in India.
6> INDIA WONT EXPORT ITS IRON ORE as its needed for its future.

THIS IS A HUGE HUGE HUGE HUGE BUYOUT.. CHECK MY LAST WORDS
what do you guy think bout it? total deal will be around 10.26 BILLION DOLLARS.
the only problem ppls r saying TATA STEEL DEPT IS BUYING A COMPANY WHICH IS 5 TIMES ITS SIZE, its one a remarkable in history.

Anglo-Dutch steel firm Corus has accepted a £4.1bn ($7.7bn) takeover offer from Indian rival Tata Steel.
The final details are now being agreed and a formal announcement is expected later, the BBC has learned.

The deal is the largest Indian takeover of a foreign company and will create the world's fifth-largest steel group.

Corus declined to comment. Formed by the 1999 merger of British Steel and Dutch group Hoogovens, it employs 47,300 worldwide and 24,000 in the UK.

Changing of the guard

In 2005, Tata Steel was only the world's 56th biggest steel producer and its takeover of Corus represents its first expansion outside of Asia.

Tata's a very big group, got a very good reputation, it's not fly by night

Denis MacShane
Rotherham MP

"It's the changing of the guard on a global scale," said BBC business editor Robert Peston.

"Once upon a time, Corus was called British Steel and was a sprawling British industry. Now it's to be taken over by an Indian company."

Analysts have broadly welcomed the deal, but warned that there are risks.

The biggest one is said to be that if there is an economic downturn over the coming years, Tata Steel might have difficultly paying off the debts it is taking on to buy Corus.

In those circumstances there might be dangers for Corus' pension fund, which has 166,000 members in the UK.

Increasing steel consolidation

Denis MacShane, the MP for Rotherham and chairman of the Steel Group of MPs, told the BBC he was positive about the deal, which he said he assumed would "now go through successfully".

"I've been urging Corus to look for a big global energy tie-up because to be a player on the steel industry worldwide, you've got to be a world player, and India, China, that's where a lot of the growth is going," he said.

"Tata's a very big group, got a very good reputation - it's not fly by night. They certainly say they're going to look after pensions and pay, so it's positive from that point of view."

The takeover comes amid growing consolidation in the global steel industry.

With both prices and demand soaring this year, led by strong demand from China, Dutch firm Mittal Steel bought European rival Arcelor for $34bn back in the summer.

Tata Steel is part of the wider Tata group, which has business interests ranging from carmaking to Tetley's tea.

In 2005, Tata Steel was only the world's 56th biggest steel producer, and its takeover of Corus represents its first expansion outside of Asia.

"It's the changing of the guard on a global scale," said our correspondent.

"Once upon a time, Corus was called British Steel and was a sprawling British industry. Now it's to be taken over by an Indian company."

http://news.bbc.co.uk/2/hi/business/6068244.stm


ahh this'll give me a orgy lol 2 lines but infinite pleasure u guys shud have heard how BBC said this in the news and expression

 

[Bull]

Good work by the TATA's.Now Indians own the largest and the 5th largest steel makers in the world.

But the steel industry has got lot more consolidation to do.Its still fragmeneted.Almost all companies fear more takeopvers and many have started making the moves like POSCO and Nippon Steel who increased the stakes in each other.

 

[Bull]

STEEL PRODUCTIONS

Top ten Producers (Mn Tons,2005)

Mittal Steel + Arcelor =============================109.7
Nippon Steel ========32.0
POSCO ========30.5
JFE =======29.9
Baosteel =====22.7
Corus+TATA Steel =====22.6
United States Steel ====19.3
Nucor ====18.4
Riva ====17.5
Thyssenkrupp ====16.5

 

[EagleEyes]

Is Russia still in top ten production of steel? What about China?

 

[ST1976]

ahh this'll give me a orgy lol 2 lines but infinite pleasure u guys shud have heard how BBC said this in the news and expression

take care too much laughing is no good for health

 

[Bull]

Is Russia still in top ten production of steel? What about China?

China is No 1 with 349.4 Mn Tonnes,followed by japan 112.5,US 94.9,Russia 66.1 and S Korea 47.8.

 

[joey]

imho tata will increase its production lines by 40MTPA... so it'll be second or third.
one more important thing is the worlds two largest steel company own by Indians .
Mittal is to setup a factory here..
Corus will have its name for time being but within 2-3 years it'll be changed to TISCO, tatas steel branch.

just check the salient featurs...
as ppls were fearing the greenfield projects in india with 1000 acres of land in each wont be hindered at all..
now its just to wait and see what the shareholders says.
deal still isnt through, its upto shareholders but i think they wont deny 26% PREMIUM.


Jb007 lol yes me not laughing but i'm pleased. TATA was once alienated by indian govt.. now those dhotiwala politicians understanding the need of pvt industries .10 billion is no joke.

 

[joey]

Bull > r u saying country wise or firm wise? if country wise its diff.. then
but india will get the tech needed from corus including iron ore and many stuffs..

but steel is said to be manufactured form wise.
tisco selling in china/britain making profit is ultimately giving revenues to both countries which inturn making economy stronger.

tata said once if it fails to acquire corus it'll acquire thyssenkrupp german company.. they used to make those ww2 big guns

 

[Bull]

Bull > r u saying country wise or firm wise? if country wise its diff.. then
but india will get the tech needed from corus including iron ore and many stuffs..

but steel is said to be manufactured form wise.
tisco selling in china/britain making profit is ultimately giving revenues to both countries which inturn making economy stronger.

tata said once if it fails to acquire corus it'll acquire thyssenkrupp german company.. they used to make those ww2 big guns

its country wise...the capacities the countries have.

 

[Neo]

STEEL PRODUCTIONS

Top ten Producers (Mn Tons,2005)

Mittal Steel + Arcelor =============================109.7
Nippon Steel ========32.0
POSCO ========30.5
JFE =======29.9
Baosteel =====22.7
Corus+TATA Steel =====22.6
United States Steel ====19.3
Nucor ====18.4
Riva ====17.5
Thyssenkrupp ====16.5

Quite impressive! :thumbsup:
Whats is Ironore and steel production on Indian soil Bull?
Please update me.
Thanks!

 

[Skeptic786]

i would say this is one of the biggest blunders indians have ever made thus far ( assuming they close the deal and take corus ) in their international forays.

Not long ago Corus was valued at around 180 million pounds ( same thing now being sold for £4.5 billion pounds )...and was running loss of 500 million pounds annual....before its fortunes were turned by factors outside its control. That is the rapid development of china...sucked in excess iron from the world markets....increasing price of steal many times.......corus further improved its situation by shutting plants and cutting jobs ( by raising funds from sale of aluminum plant --now the indians wouldnot be getting aluminium plant ).

But china has turned net exporter of steal last year.....hence the prospects for iron prices doesnot look good and bad days for corus are only round the corner.

What is TATA doing? TATA is loaning 2-3 billion pounds to buy Corus.....which simply means the indians would be paying good money ( in interest payments ) back to the westerners who loaned them the money to buy corus...and they donot even have to worry about the headache of corus slipping back into loss-making....as is expected.

of the 4.5 billion price of corus.....2 billion is added purely due to market speculation in the last 6 months itself ( when the russian rumors were abound..these rumours added about 1.5 billion dollars as bid was expected..which never came....then the indian rumour started which made the share price jump further adding another 500 million pounds or so....before the indians actually came out with a price)......from this one doesnot have difficulty in concluding that corus is being sold...way over its worth. From the British and Holand shareholder's point of view this is truely win win situation...they should take the money and run!.

 

[joey]

IMHO you are completely Wrong.based on the whole years speculation Corus's share was around 395 pence. so tata offered a 26% premium over that.

If u havent seen Md saying tata said clearly "no guarantee on repayment of debt".
and the money will be paid from Corus's profit only.
what will india gain? some jobs, huge r&d the technology which is gonna get build in the 3-4 greenfield projects TATA is building with one 3000 acres of land.

and corus at 180 million pounds?? still it was 9th largest steelmaker? LOL!!!! biggest joke.
even TATA/TISCO worthed more than that. let alone whole TATA.whole TATA's market capitulation is around 50 to 55 billion dollars.

anyways last but not least, these are private companies with paid technicians they knows their business well.so its unlikely TATA have anything to lose.
risk is there but it knows wayouts as its in 99th business year this year.

 

[joey]

a company who worths 180 million pounds adds 2 billion[2000 million] pounds on market speculation of 6 months..it cant be anymore funnier.

 

[Neo]

Joey,

What are these rumors about Brazilian bid?
I thought Corus was a done deal!

'Brazil firm 'may make Corus bid'

Corus employs 24,000 people in the UK

Brazilian steel group CSN is reported to be preparing to trump India's Tata Steel and make a rival takeover bid for Anglo-Dutch firm Corus.
CSN has appointed investment bank Lazards to advise it on launching a counter offer, said the Sunday Times.

Meanwhile, German steel group Thyssenkrupp denied it was interested in beating Tata's £4.3bn ($8.1bn) bid.

Tata's offer was formally accepted by the Corus board on Friday morning but still needs Corus shareholder backing.

Job fears

CSN describes itself as one of the largest steel firms in Latin America, employing 8,000 people.

It has overseas operations in the US and Portugal.

Corus employs 47,300 people worldwide, including 24,000 in the UK at plants at Port Talbot, Scunthorpe and Rotherham.

It was formed out of the 1999 merger of British Steel and Dutch group Hoogovens.

A combined Tata Steel and Corus group would create the world's fifth largest steel business.

Tata has said it could not rule out any job cuts at Corus if its takeover is successful.
Link: http://news.bbc.co.uk/2/hi/business/6074602.stm

 

[joey]

NO IMHO i said in my first post its not done.
management accepted it , ITS UPTO SHAREHOLDERS.

but This Brazilian CAN be a Rumor or a true counter bid for which TATA have to increase premium to impress shareholders. its totall upto shareholders but management said with TATA things will gel well.

now how rumor? say Corus share was 355 pence per share now tata offered it at 455 pence a healthy 26% premium.
now if you "a company" hold a lot of share he will tru to make a rumour so that tata makes more bid afterall the more tata increases premium better for shareholders.

I believe it'll go to TATA. lets wait and see.
even the paper today wrote thyssenkrupp has bided but a senior official of thyssen denied.

its totally upto shareholders.ur simply buying all company shares from them.