The Hindu Business Line : Corus countdown: Up to 9 bids over 10 hours if...

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Chennai Jan. 28 With time ticking away fiercely in the Corus tie, the latest development is the announcement by the UK Takeover Panel of auction.

"The auction rules laid down by the Panel have clearly been developed in close consultation between Tata Steel, CSN, Corus and their advisers since, while there are similarities in the principles sought to be applied by the Panel in this case to those in the Tiger/Florissant/QXL ricardo auction, the details differ considerably," says Mr Roy Montague-Jones of the London-based law firm Reed Smith Richards Butler LLP.

"The Panel is looking to establish an orderly framework for the resolution of the competitive situation, and to provide that, unless yet another bidder now emerges, neither Tata Steel nor CSN can amend its offer following the end of the auction process," he explains.

"While the Panel has announced various timings for the purpose of the auction, it has reserved the right to amend the procedure at its discretion. This is to ensure that the auction is manifestly fair throughout," elaborates Mr Montague-Jones.

"In summary, if Tata Steel and CSN are still in competition for Corus by 4.30 p.m. on Tuesday, it will allow each side up to nine bids over the next 10 hours, with the winner being announced shortly afterwards."

The market is clearly expecting a higher offer since Corus shares closed on Friday night at 558p against Tata Steel's offer of 500p and CSN's of 515p, notes Mr Montague-Jones.

More Stories on : Mergers & Acquisitions | Steel | Tata Steel Ltd

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