Tata Steel to okay financial structure for Corus by month-end

Tata Steel said on Friday it will finalise the financial structure to fund acquisition of Anglo-Dutch steelmaker Corus by the end of this month.

"We would finalise our financial structure by the month end. We are thinking on many ways of raising money," Tata Steel Managing Director B Muthuraman told reporters in New Delhi.

He, however, did not elaborate on how the company planned to raise the money.

Allaying apprehensions that the $12.1 billion deal was costly, he said the company would structure the financing in a way that it did not harm the employees and shareholders.

Tata Steel settled for the right price in the bid for Corus and said the company was known for being prudent in financial matters, Muthuraman said.

"We would not have paid more than what we should pay," he said.

The acquisition would not affect the ongoing expansion at the Jamshedput steel plant. Further brownfield expansion in this plant was not possible due to various limitations, he said. The company has already decided to take the capacity to 10 MT from the current 5 MT, he added.

The Tata-Corus Saga