Corus, the Anglo-Dutch steel and aluminium company, has postponed a shareholder vote on a proposed takeover by Tata Steel for two weeks to give Companhia Siderurgica Nacional (CSN), of Brazil, more time to launch a formal bid.
CSN, which has launched an informal offer for Corus conditional upon final financing, must lock in a bid before December 20, when Corus shareholders vote on the £4.3 billion offer from Tata. The news came as CSN continued talks with Corus’s pension trustees over the Brazilian firm’s plans to secure the company’s £19.3 billion pension plan.
Under a deal unveiled in October, Tata would buy Corus for 455p per share, and pay upfront the deficit on the Corus Engineering Steel Pension Scheme for $241.22 million (£163.5 million).
Tata also offered to boost the contribution rate to the British Steel Pension Scheme from 10 to 12 per cent until March 31, 2009.
However, a week after Corus shareholders were notified of the December 4 vote date, the company received a 475p-per-share informal cash offer from CSN.
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CSN also indicated that it would match Tata’s offer on pensions.
CSN’s offer was conditional on further due diligence, final financing arrangements and approval from the Corus board. Corus said that it had given CSN further access to its books, but no formal bid had been forthcoming.
It is understood that CSN’s due diligence on Corus is substantially complete.
Corus said that it would hold an extraordinary general meeting on December 20 for shareholders to vote on Tata’s offer.
“The board of Corus has decided that it is in the best interests of Corus shareholders to allow CSN some additional time to satisfy its pre-conditions and to determine whether it will put forward a formal offer,’’ the company said.
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Corus shares closed down 1.09 per cent at 499½p.