The board switch itself is not critical—the decision rests with Corus’ shareholders who haven’t taken a decision yet—but in detailing the "compelling industrial logic" for Corus to go with CSN, a critical message was sent to financiers and bankers that their money was likely to bring bigger and quicker returns through the alliance with CSN. And since both Tata and CSN plan to service the bulk of debt raised for the acquisition through Corus’ operations itself, this view from the board will count, even if it is not decisive.
"It means the financiers for the CSN bid have been given long-term confidence," an advisor with a leading international pensions fund told Outlook. And even as Tata was grappling with the choice of hiking his second bid, appropriate noises from the CSN camp followed, of the likes of a ‘leak’, no doubt, that CSN was prepared now to go into the 700s to outbid Tata Steel. As matters stand now, feel many analysts, Tata is unwilling to hike his second bid beyond 540-550 pence; it may actually be in the 520-530 pence range.
Two Nation Rehash 
Judith Brown 
