Thursday, December 14, 2006

Tata Corus CSN - Three way Deal?

Instead of fighting over Corus if CSN and Tata Steel combine to form a three way alliance, it may be the best for the shareholders for all three companies (at least for CSN's and Tata's). The ongoing bidding war would only mean that either of the two companies would end up overpaying for the deal and the other would miss out on the synergies.

It may be best to try a new form that companies Corus's access to markets, CSN's access to raw materials and Tata's managerial capability. But would all the managers be ready to give up personal gains for this option? This remains to be seen as the story onfolds.

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