Corus shares up on report CSN may bid

LONDON, Oct 18 (Reuters) Shares in Corus Group rose 3.8 percent on Wednesday following a report Brazilian steelmaker Companhia Siderurgica Nacional was eyeing a rival bid for the Anglo-Dutch firm.

The Metal Bulletin cited a source closed to Corus saying CSN was ''waiting in the wings'' to launch a bid for Corus.

''The stock has spiked on the report. There is a chance now that someone is going to enter the fray,'' said one analyst.

India's Tata Steel Ltd. said on Tuesday it had made a 4.1 billion-pound (.64 billion) takeover proposal for Corus but a final deal was yet to be agreed.

A Corus spokeswoman declined to comment on the report.

Corus called off a proposed multibillion pound merger with CSN in 2002.

The two companies were partners in a Portuguese steelmaking joint venture until May this year when Corus said it would sell its 50 stake to the Brazilian company.

Corus said on Tuesday Tata Steel had proposed a possible cash offer of 455 pence per share, and sources familiar with the situation told Reuters that Corus's board had given tacit approval to the bid and a deal was expected by the end of the week.

Corus shares were trading 1.5 percent firmer at 486-1/4 pence after hitting a high earlier of 498 pence.

Global steelmakers are under pressure to cut costs and become more competitive as China switches from a net importer to exporter of steel.

REUTERS DKS RN2101