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Journalism of Courage
With both the suitors 8212; Tata Steel and CSN of Brazil 8212; weighing the next option for the takeover of UK-based Corus group, shareholders of the Anglo-Dutch steelmaker voted to adjourn the extraordinary general meeting of the company without a fixed date until further notice, in a bid to give another chance to both the suitors.
Corus group PLC had earlier this month said it would ask shareholders at each of the reconvened EGM and court meetings to be held today, to adjourn those meetings. At the court meeting held earlier in the day, there were 100 per cent votes to adjourn the meeting sine die.
Meanwhile, in the extraordinary general meeting there was minor resistance in the form of 1,020 votes, which were against the motion, a company statement on the London Stock Exchange LSE website said.
Corus will announce a proposed date for the adjourned meetings in due course.
With the UK takeover panel fixing a January 30 deadline for revised bids, the company expects 8220;the competitive situation to be resolved, at the latest, on or shortly after that date.8221; Corus shareholders were originally scheduled to vote on the competing offers today.
The UK Takeover Panel was mulling over a rare intervention by arranging an auction between the two bidders 8212; Tata Steel and CSN.
Tata Steel had announced a formal bid of 4.7 billion pounds 500 pence per share for Corus. But CSN has made a higher offer of 4.9 billion pounds 515 pence per share.
The panel is set to intervene in the battle as both the bids are being made through a scheme of arrangement that requires court approval. The report said it would be a rare intervention and has been taken by the Panel only three times in its history. The panel plans to consult the three parties and decide on an auction date and avoid a drawn-out battle. The panel may decide on a sealed process where bidders8217; offers are final, or a standard auction held over a period of days, it said.
The terms of CSN8217;s pre-conditional offer remain valid until July 20, 2007, resulting in a long period of uncertainty for Corus and its shareholders.
