CSN places 3% premium bid over Tatas for Corus

London, Dec 11 (UNI) Brazilian steelmaker CSN today tabled a formal offer of 515 pence per share to buy Anglo-Dutch Corus, which is at three per cent premium over the 500-pence-per-share revised bid by the Tatas.

Companhia Siderurgica Nacional (CSN), which already owns 3.8 per cent in Corus, valued the latter at 9.6 billion dollars (4.9 billion pounds).

In a statement, CSN Chairman and Chief Executive Benjamin Steinbruch said, ''Our goal is to unlock the value of our iron ore assets through Corus, transforming them into cost effective, high quality steel products using Corus's advanced engineering capabilities and its excellent European distribution platform.'' Analysts claim CSN has the upper hand because it could extract more cost-savings from a deal, partly because the Brazilian firm will be able to export its iron ore supplies to Corus's business in Europe.

''Clearly, CSN is able to realise more synergies than Tata,'' said Rabobank analyst Richard Brakenhoff. He said CSN was paying a high price for Corus compared with the value put on market-leader Arcelor Mittal and thought Tata Steel was unlikely to return with a higher bid.

The steel conglomerate sees annual benefits of 300 million dollars by 2009 with the proposed take over.

Taking note of the move by CSN, Tata Steel said it will announce its position soon.

''Tata Steel notes the announcement by Companhia Siderurgica Nacional of an offer for Corus. Tata Steel is currently considering its position and will make a further announcement in due course,'' it said in a statement.

Tata Steel, earlier in the day, raised its bid for Corus to 500 pence per share from the earlier 455 pence per share.

The Tatas board had unianimously approved the revised bid, which valued Corus at 9.2 billion dollars (4.7 billion pounds).

''The terms of the revised acquisition value the entire existing issued and to be issued share capital of Corus at about 4.7 billion pounds,'' it said.

Tata Steel had on October 20 announced its plans to acquire Corus for 8.1 billion dollar to create the world's fifth largest steel manufacturer.

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