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- By Parinda News Bureau, December 11, 2006, 13:45 IST
Tata Steel shares dipped today on the Bombay Stock exchange amidst fears that the Steel major could be overpaying in the largest takeover by an Indian company.
Tata Steel on Sunday revised its cash offer to 500 pence per Corus share from a previous cash bid of 455 pence, ahead of a 475 pence per share offer by Brazil's Companhia Siderurgica Nacional.
Tata steel shares dipped to touch a low of Rs.447 mid session, the lowest since October 20 when Corus gave its backing to the Indian steelmaker's initial bid.
On Sunday, Corus Chairman Jim Leng described the revised offer as a "substantial increase, while Tata Steel Chairman Ratan Tata said he was confident of his company's latest approach.
Tata, advised by ABN Amro and Deutsche Bank, said it planned to raise the extra funding through two letters of credit facility agreements dated December 5 and December 10 between, among others, Tata Steel Asia Holdings Pte Ltd, Tata Steel, Standard Chartered Bank and Standard Chartered First Bank of Korea.
If the deal goes through, it would create the world's fifth-largest steelmaker.
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