Indian Steel giant yesterday outbid CSN in an auction held in UK. Tata Steel won this auction with 608 pence per share for the Netherlands based Steel company Corus. This deal makes Tata Steel world's 5th largest Steel company with combined capacity of 22 metric ton per annum.
Tata's bid for 608 pence per share of Corus is 34% higher than the original bid.
Corus share holders will meet today to ratify the deal.
Tata Steel's share was trading above the 500 Rs mark in the last week. It saw a rapid growth from around 470 levels to approx 510 levels. Today when the markets opened it dropped by about 8% landing back to the 470 levels.
In the metal space Hindalco is also down at about 1.5%, trading at 178 level. The BSE metal index is down by 10.5% too.
It was a good opportunity for the investors who had bought Tata Steel shares at a higher price (above 500) to exit this counter after a long wait of a few months, with some loss, of course. In November/December rally also, Tata Steel was left out of the rally with a resistance at 490 level.