Corus Bid To End Through A Nine-Round Auction
Finally, the four-month long bidding battle for Anglo Dutch steel giant Corus is nearing an end. The UK take-over panel has announced an auction mechanism to decide the winner. The nine-round knock-out auction will end on January 30, and the winner will be decalred on January 31.
It’s UK’s takeover panel that has set the rules and procedures for an auction for Corus. The auction procedure will consist of a maximum of nine rounds, comprising up to eight rounds in which each offeror is able to lodge a fixed price bid in cash followed by, if the auction procedure has not by then concluded, a final round.
In the first 8 rounds, the auction will move into a subsequent round of bidding only if the player with the lower offer wants to increase its cash bid. This must be at least 5 pence above the previous bid. However, in the same round the player with the higher bid can make any revised bid, not subject to a minimum increment.
CSN’s last bid was 515 pence a share, and Tata is likely ot better that in the final bidding rounds.
01/29/07, 2:39 PM |
the tata’s are cutting it real fine. nail biting finish this will be.