CSN drops bid for US firm; sends papers to Corus shareholders

Brazilian steelmaker CSN, which has rivalled Tata Steel`s bid for Anglo-Dutch company Corus, has pulled out of another bidding war for a US-based company Wheeling Pittsburgh Corp.

London, Dec 15: Brazilian steelmaker CSN, which has
rivalled Tata Steel`s bid for Anglo-Dutch company Corus, has
pulled out of another bidding war for a US-based company
Wheeling Pittsburgh Corp.

At the same time, CSN said in another regulatory filing
here that the information document setting out details of its
proposed acquisition of Corus and other information relating
to the CSN group is being posted to Corus shareholders today.

The Latin American firm said in a filing with Brazilian
regulatory authority it was abandoning its bid to acquire the
US-based steel services firm.

The decision was on expected lines as Wheeling-Pitt
shareholders recently voted out its board that supported CSN
bid and a new board was brought in place that favoured a rival
bid from Chicago-based Esmark Inc. CSN, however, had
officially refused to concede defeat after the vote.

CSN`s bid to acquire Corus had come at around the same
time when Wheeling-Pitt`s shareholders voted in a new board
favouring Esmark`s proposal.

The Brazilian firm said today the scheme document would
be posted to Corus shareholders within 28 days of satisfaction
or waiver of the pre-condition, which includes the rejection
of Tata Steel`s bid by Corus shareholders or lapse/withdrawal
of the bid by the Indian steel giant.

On December 11, the boards of CSN and Corus announced
their agreement on the terms of a recommended pre-conditional
cash acquisition of the European steel firm at a price of 515
pence per share, valuing Corus at about 4.9 billion pounds.

Bureau Report

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