Battle for Corus Today


Written on 9:59 AM by nitesh

Today is the grand finale of the biggest reality show i.e Who will buy Corus !!! CSN (Companhia Siderurgica Nacional) or TATA. Who needs to watch Big Brother or Big Boss when you have far bigger and fascinating dramas to watch for in real life. The bidding process for the Corus will start today at 10.00pm IST and will close at 8.00 am . There are maximum of 9 rounds and in each bid there should be a minimum jump of 5pence per share. If by any chance there is tie the result will be certainly declared by 1st Feb.
Both the bidders have previously termed their respective offers - 500 pence a share by Tata and 515 pence bid by CSN - as fair valuation for Corus while promising no job cuts after the deal. Tatas will have to make an offer of 520 to stay in the bidding process otherwise the battle will be over before even starting.

Bigger segment of media is favouring the Brazilian CSN as its present bid is higher then the Tatas and there are rumours that CSN is so interested in Corus that it can go till 600p per share. But we cannot take Tatas easily , Tatas have not yet showed their cards there may be a surprise coming. British media are comparing Tatas with Shilpa Shetty who calmly won the Big Bro reality show. It's like a poker game , the earlier you reveal your cards more the chances that the rival will go for the kill. The auction process that could take the final bid to anything above $11 billion and the winner will become the 5th largest steel player in the world.

Isn't the whole process exciting !!

The auction process is very much like a thriller hindi movie in which there are two heroes wooing for the female actor and in the climax another hero comes up and go away with the actress. The possiblity of a 3rd surprise bidder cannot be ruled out. Investor bankers are working overtime to finalize the bidding strategies , Tata board will meet today for the quarterly results but the main agenda will be Corus. Tata is represented by Deutsche Bank, ABN Amro and NM Rothschild, while CSN is advised by Lazard and Goldman Sachs.

The battle is now not limited to companies only, all the industry in the three countries is eagerly watching it. Such battle will become a routine in coming years as BRIC (Brazil, Russia, India and China) nations' hunger is increasing and the day is not far when we will see companies from these countries bidding for US giants and eventually winning them.

There is one more angle also , the bidder who feels they are losing should try to increase the bid to a very high amount so that the winner will have to pay a heavy price for the Corus , then the loser can bid for Tata-Corus of CSN-Corus after 4-5 years. The battle will be far from over on Feb 1st.

Next soap coming is Kaun Jitega Hutch. Last few finalist in the show are Reliance , Vodaphone , Orascom , Essar , Hindujas , Maxim . Though some are small companies but they will play the spoil sport .

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