Iron ore dispute may threaten CSN bid for Corus- FT

LONDON, Jan 25 (Reuters) Brazilian mining group Companhia Vale do Rio Doce (CVRD) has said it will challenge Companhia Siderurgica Nacional's (CSN) ability to supply iron ore to Corus , potentially harming its bid for the Anglo-Dutch steelmaker, the Financial Times said on Thursday.

Jose Martins, director for ferrous operations, told the newspaper CVRD would question CSN's ability to ship iron ore under the terms of a 2001 contract signed between the firms.

CSN's rights to the iron-ore supply would be key to a merged business, the newspaper reported.

''If CSN buys Corus, we will look closely at how the deal is done to see if our right (to the ore) remains in force,'' Martins was quoted in the newspaper as saying.

Corus shares fell 1.4 percent to 544-1/2 pence by 0802 GMT.

CSN and CVRD could not immediately be reached for further comment.

CSN and India's Tata Steel are battling to take over Corus. Britain's takeover watchdog has set a Jan. 30 deadline for the two companies to make revised offers for Corus, which was formed from the 1999 merger of Dutch group Hoogovens and British Steel.

REUTERS PV DB1354