India's Tata Steel
The deal, India's biggest-ever foreign takeover, is expected to fuel a new wave of consolidation in the fragmented steel sector after Mittal Steel bought Arcelor for $32 billion last year to create the world's biggest steel producer.
"This creates an incentive for more consolidation in Asia (Japan, China) and in the United States," said Sylvain Brunet, head of steel and mining at Exane BNP Paribas, adding that CSN was a likely predator after missing out on Corus.
Corus shares jumped 7 percent to near the bid price, and were up 6.7 percent at 601 pence at 1500 GMT. Other European steel stocks also rose, with Arcelor Mittal hitting a new high of 36.32 euros.
Corus takeover turns India euphoric.
India - This former British colony is discovering that it is far better to take over than be taken over.
India erupted with serves-them-right jubilation this week when Tata Group, an Indian conglomerate, won a bid for the Corus Group — the Anglo-Dutch descendant of British Steel — for more than $12 billion, the largest acquisition ever by an Indian firm. Headlines spoke of empires striking back, while pundits and industrialists said India had at last arrived as a world power.
As the value of overseas bids by Indian firms soared to $21 billion last year from less than $1 billion in 2000, according to the market researcher Dealogic, an elite slice of this country has grown intoxicated by the fantasy that it will one day own the world.
The takeover of Western companies by Indians has struck many here as evidence of a delicious reversal of fortune: a once-proud civilization, having fallen to the humiliations of colonization, is now buying out the hallowed corporations of the West.
"A pulsating, dynamic new India is emerging," Amitabh Bachchan, a Bollywood actor, says in a television ad for The Times of India. "An India whose faith in success is far greater than its fear of failure. An India that no longer boycotts foreign-made goods but buys out the companies that make them instead."
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