The Corus board had supported the Tata Steel offer to acquire the company for $8.04 billion. But it still needs the backing of Corus' shareholders.
Tata Steel is expected to launch a tender offer within two weeks to get the offer passed by the Corus shareholders, some of whom had expressed unhappiness about the price offered by Tata Steel.
Standard Life Investments, the largest shareholder with a 7.9 per cent stake, told Business Standard on Saturday that the offer price was lower than it had expected the Corus board to agree to and recommend.
Industry sources said the possibility of a counter-offer was high. "However, Tata Steel is unlikely to give up as it has already got its financing in place," they added.
There had also been speculation that German steel group ThyssenKrupp may be interested in improving on Tata's offer. However, ThyssenKrupp put the speculation to rest by denying any such move.
Corus had made it clear on Friday that it had spent a year looking for a strategic partner in Brazil, Russia and India. The board of directors of Corus also said it would subscribe to the Tata offer. The Corus directors have a combined 0.1 per cent stake in the company.
Tata Steel had offered 455 pence a share and an upfront payment of £126 million ($236 million) to the pension scheme as well as to enhance the employer's contribution to the pension fund from 10 to 12 per cent.
The Tata offer was priced at a 26.2 per cent premium over the average closing mid-market price of the Corus stock for the last 12 months ended October 4.
Different strokes