Corus shares jump on new bid rumours; Tata Steel down

Shares of Corus Group Plc, surged by 1.12 per cent in trading on Friday on reports that Tata Steel may revise its takeover offer, but stocks of the Indian company fell 1.67 per cent on the bourses.

While Corus shares gained 1.12 per cent or 6 pence in intra-day trade on the London Stock Exchange, Tata Steel shares closed 1.67 per cent or Rs 7.95 down at Rs 467.60 on the Bombay Stock Exchange.

Reports in the Indian media said on Friday that Tata Steel may revise its takeover offer to up to 600 pence a share, valuing Corus at over $11 billion.

Brazil's Companhia Siderurgica Nacional SA has currently put a top bid of 515 pence.

The Tata-Corus saga

Last month, the UK Takeover Panel gave the two competitors time until January 30 to revise their bids.

It had said that in the eventuality of a competitive situation prevailing shortly before that date, it would decide the winner through an auction.

The Tata Steel's Board is scheduled to meet on January 30 to consider the earnings during the October-December quarter, but reports suggested that the meeting could be advanced to take into consideration the Corus agenda as well.