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TATA STEEL won the battle for the takeover of Anglo-Dutch steelmaker Corus on Wednesday, agreeing to pay a final price of $12.1 billion (Rs 53,469 crore) after eight hours of tense bidding against Brazilian steel major Companhia Siderurgica Nacional (CSN). The acquisition, the biggest-ever by an Indian company overseas, makes Tata-Corus the fifth largest steel manufacturer in the world.
The drama began on Tuesday afternoon with Arun Gandhi, the Tata Group’s mergers and acquisitions head, Koushik Chatterjee, Tata Steel’s vice-president, finance, and Sandeep Biswas, Tata Steel’s marketing head, arriving at the London offices of the group’s UK lawyers, Herbert Smith. They were accompanied by their advisers, top officials of ABN Amro Bank, Deutsche Bank and investment bankers N.M. Rothschild. The broad strategy had been hammered out earlier at a closeddoor meeting in a Buckingham Gate Hotel suite. Ratan Tata, assisted by N.A. Soonawala, Tata Sons vicechairman, and B. Muthuraman, Tata Steel’s managing director, directed the team’s moves from Mumbai. All three spent a sleepless night at the Tata-owned Taj Mahal Hotel.
The CSN team, led by Chief Financial Officer Octavio Lazcano and assisted by investment bankers Goldman Sachs and Lazard, operated from Lazard’s London headquarters. Corus chairman Jim Leng and chief executive Philippe Varin were at the offices of their law firm, Slaughter and May.
COST OF TAKEOVER $12.1 billion Tata’s contribution: $4.1 billion. Tata Steel hopes to up capacity to 40 mn tonnes; revenue to $32 bn by 2012 Tata winning bid 608 pence/share Rival CSN gave up at 603 pence/share POST
The drama began on Tuesday afternoon with Arun Gandhi, the Tata Group’s mergers and acquisitions head, Koushik Chatterjee, Tata Steel’s vice-president, finance, and Sandeep Biswas, Tata Steel’s marketing head, arriving at the London offices of the group’s UK lawyers, Herbert Smith. They were accompanied by their advisers, top officials of ABN Amro Bank, Deutsche Bank and investment bankers N.M. Rothschild. The broad strategy had been hammered out earlier at a closeddoor meeting in a Buckingham Gate Hotel suite. Ratan Tata, assisted by N.A. Soonawala, Tata Sons vicechairman, and B. Muthuraman, Tata Steel’s managing director, directed the team’s moves from Mumbai. All three spent a sleepless night at the Tata-owned Taj Mahal Hotel.
The CSN team, led by Chief Financial Officer Octavio Lazcano and assisted by investment bankers Goldman Sachs and Lazard, operated from Lazard’s London headquarters. Corus chairman Jim Leng and chief executive Philippe Varin were at the offices of their law firm, Slaughter and May.
COST OF TAKEOVER $12.1 billion Tata’s contribution: $4.1 billion. Tata Steel hopes to up capacity to 40 mn tonnes; revenue to $32 bn by 2012 Tata winning bid 608 pence/share Rival CSN gave up at 603 pence/share POST
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