Hues wy ‘The case documents a high profile cross border acquisition by an Indian company. Students are required to assess the strategic motives of these firms and perform a valuation analysis. To introduce issues in a cross border, high leverage acquisition Financial Management, Mergers and Acquisitions. & This case was prepared by Vishwanath S.R. of Institute of Management Technology, Nagpur and Rajesh Haldipur of SDM Institute for Management Development, Mysore.Case 12: Tata Steel: The Bid for Corus 201 INTRODUCTION On October 20, 2006, the boards of Tata Steel and Corus announced their agreement on the terms of the recommended acquisition of the entire issued and to be issued share capital of Corus at a price of 455 pence in cash for each Corus Share, valuing Corus at £43 billion. ‘Tata Steel said its 455-pence- a-share offer for Corus represents on an enterprise value, a price earning ratio of 7.9 times Corus’ 06 carnings and includes « premium of approximately 26.2% to the average closing mid-market price of 360.5 pence. Details of the merger weee likely to be decided by a strategic and integration committee that would develop and execute the integration and growth plans for the combined entity. Corus is tuch larger than ‘Tata Stecl, both in volumes and sales figures. Globally, itis ranked ninth in terms of volume, Tata Steel, in comparison, is ranked 58. Ratan Tata, Chairman of Tata Steel, said!: “This proposed acquisition represents a defining moment for ‘Tata Steel and is entirely consistent with our strategy of growth through international expansion, Corus and Tata Stee! are companies with Tong, proud histories. We have compatible cultures of commitment ro stakeholders and complemen. tary stengths in technology, efficiency, product mix and geographical spread. Together, we will be even better equipped to remain at the leading edge of the fast changing steel industry.” Jim Leng, Chairman of Corus, said: “This offer from Tata Steel reflects the substantial value created for Corus sharcholders since the placing and open offer and launch of our “Restoring Success” programme in 2003. In the middle of last year, my board agreed @ strategic way forward for Corus to seek access 0 low cost production and high growth markets, Consistent with this, the Company held talks with a aumber of parties from Brazil, Russia and India, This transaction represents the culmination of these talks. This combi- nation with Tata, for Corus shareholders and employees alike, represents the right partner at the right time at che right price and on the right terms. This creates a well balanced company, strategically well placed to compete in an increasingly competitive global environment.” “Tata Steel offered co fund upfront the IAS 19 deficit on the Corus Engineering Stecls Pension ‘Scheme by paying £126 million into the scheme; and to increase the contribution rate on the British Steel Pension Scheme from 10 percent to 12 percent until 31 March 2009. The Acquisition would be made by Tata Sec} UK, a wholly-owned indirect subsidiary of Taca Steel ‘The Corus Directors unanimously recommended chat Corus Sharcholders vore in favor of the ‘Scheme after taking advice from Credit Suisse, J P Morgan Cazenove and HSBC. If the deal sailed through, they would be the fifth largest global steel producer with proforma crude steel production of 23.5 million tonnes in 2005, ‘Tata Steel announced that it was keen co retain Cosus's management, including Chief Executive, Philippe Varin. The combination is strategically compelling, creating vertically integrated global steel group. “The acquisition would position die combined group as the fifth largest steel company in the world by production, with a meaningful presence in both Europe and Asia. The powerful combination of low cost upstream production in India with the high end downstzeam processing facilities of Corus will improve the competitiveness of the European operations of Corus significantly. The combination 1, ww bizjournals.com202. Cases in Corporate Finance will also allow the cross-ferilisation of research and development capabilities in the automotive, packaging and construction sectors and there will bea transfer, from Europe to India, of rechnology best practices and expertise of senior Corus management. In addition, Tata Steel will retain access +6 {ow (ost ra materials and slab forthe enlarged group, and exposure to high growth in emerging markets, whilst gaining price stability in developed markets, As per the agreement, 75 percent of Corus shareholders would have co tender their shares for the aquisition co be complete. When complete, this would be the largest takeover by an Indian company overseas, The deal would also catapult the combined entity to among the world’s largest stecl companies wich a total capacity of about 24 million tonnes per year. The new, combined entity of Taxa Stecl-Corus would have a capacity of 40 million conne by 2011-12 and a turnover of $32 billion by 2011-12 with an EBIDTA margin of 2596". The Tata Steel has developed a six-pronged strategy in 2003, where the target was to increase capacity from 4 million tonne to 30 million tonne by 2015, The $8 billion Tata Steel-Corus deal would be at No. $ among the top deals witnessed by the steel industry over the last few years. Stel Industry Background? Steel is an alloy of iron and carbon containing less than 2% carbon and 19 manganese and small amounts of silicon, phosphorus, sulphur and oxygen, Steel is the most important engineering and construction material in che world. It is used in every aspect of our lives, from automotive manufacture to consteuction products, from steel coecaps for protective footwear to reftigerators and washing machines and fiom cargo ships to the finest scalpel for hospital surgery. Most steel is made via one of two basic routes: Integrated (blast furnace and basic oxygen furnace) ‘© Blectric are furnace (EAE) ‘The incegrated route uses raw materials (that is, iron ore, limestone and coke) and scrap to create steel. The EAP method uses scrap as its principal input The EAF method is much easier and faster since it only requiees scrap steel. Recycled stect is introduced into a furnace and re-melted along with some other additions to produce the end product, Steel can be produced by other methods such as open hearth. However, the amount of steel Produced by these methods decreases every year. Of the steel produced in 2005, 65.4% was produced via the integrated route, 31.7% via EAP and 2.9% via the open hearth and other methods. Ata steel mill, the crude steel production process turns molten steel into ingots, blooms, billets or slabs. These are called semi-finished products. Semi-finished products are solid blacks of steel, Usually wich a square or rectangular cross-section, This secion draws from the information on the International Iron and Steel Institute website hep: wonwworldstec.orgvive, logy, sto ging the vany tel Tata iby 15. veel Case 12: Tata Steet: The Bid For Corus 203 Finished steel products are forged from semi-finished products. They are classified as follows: = Cold-finished bars and flas (bright bars) = Cold-finished sections including forged and cold-formed sections = Cold-rolled narrow strip + Cold-rolled plate and sheet in coil and lengths + Deformed reinforcing bars = Drawn wire = Forged bars = Forgings (unworked) Heavy sections, piling and welded structural sections + Hot-rolled bars and flats in lengths = Hor-rolled light sections 1» Mot-rolled narrow strip including universal plates = Hot-rolled rod in a coil (inchiding reinforcement bar in a coil) + Hoe-rolled wide strip, plate and sheet 1 Points, switches, crossings, tyres, wheels and axles + Rails and rolled accessories Silicon electrical sheet and strip = Sceel castings (unworked) # Steel tubes (seamless and welded, and steel cube fittings) = Tinmill products + Zinc- and other-coated sheet and strip ‘A fla steel product is typically made by rolling steel through sets of rollers to produce the final thickness. There are two types of flac steel products: Plate products. Vary in thickness from 10 mm co 200 mm. Plate products are used for ship building, construction, large diameter welded pipes and boiler applications. + Strip products, Can be hot of cold rolled and vary in thickness from 1 mm to 10 mm. Thin flat products ate used in automotive body panels, domestic white goods (for example, reftigerators and washing machines), steel (or tin) cans, and a number of other products from office furniture to heart pacemakers A long product is 2 rod, a bat or a section. Typical rod products ate the reinforcing rods used in concrete, engineering products, gears, tools etc. are typical of bar products and sections are the large rolled steel joists (RSJ) that are used in building projects. Wire-drawn products and seamless pipes ace also part of the long products group. Supply of raw materials is a key issue for the world sceel industry. IST manages projects which look at the availablity of raw materials such as izon ore, coking coal, freight and scrap.204 Cases in Corporate Finance Scrap iron is mainly used in eleceic ate furnace steelmaking, The scrap arising in the making ang using of steel, obsolete serap from demolished structures and end-of life vehicles and machinety ig recycled to make new steel. About 500 million connes of scrap are melted each year Iron ore and coking coal ate used mainly in the blast furnace process of iron making, For this process, coking coal is turned into coke, an almost pure form of carbon which is used as the main fuel and reductant in a blast furnace, ‘Typically it takes 1.5 tonnes of iron ore and about 450 kg of coke to produce 2 ton of pig iron, the raw iron that comes our of a blast furnace. Some of the coke can be replaced by injecting pulverized coal into the blast furnace. Iron is 2 common mineral on the earths surface, Most iron ote is extracted in opencast mines in ‘Australia and Brazil, carved to dedicated ports by rail, and then shipped to steel plants in Asia and Europe, Iron ore and coking coal are primarily shipped in capesize vessels, huge bulk carriers that can hold a cargo of 140,000 ton or more. Sea freight is an area of major concern for steelmakers today, as the hhigh demand for caw materials is causing backlogs at ports, with vessels delayed in queues. Since the World War Il, the steel industry has experienced thice distinct phases- growth (1950-73), stagnation (1974-2001) and boom (2002-06).’ The demand for steel grew at an annual rate of 5.8% during 1950-73 as the industrialising nations were building theic civil infrastructure, The oil shocks of 1975 through 1979 slowed consumption in the second phase. The production of crude steel grew at 0.6% p.a. over the entire period. Steel prices declined by 2-3% p.a. During 1999-2001 the industry's overcapacity hovered near 25% globally. Only a few companies were able to sustain, Since 2002, the annual steel production has grown at 7-8% driven almost entirely by the double digit growth in China. The huge demand fom china has caused a commensurate leap in steel prices, The industry has experienced a drop in the over capacity from 23% in 2001 to about 17% from 2003-05. But the demand from China has also witnessed a structural change. From 2002-04 China’ capacity for producing crude steel increased on average by 55%. By 2005, China became a net exporter of steel. In the first half of 2006, China overtook Japan, Russia and the EU 25 to become the world’s largest steel exporting country. . Exhibit 1 presents the list of top stecl-producing countries as of 2005 and Exhibit 2 presents che historical steel prices. Competition: US, Europe and Emerging Markets In the past, industry consolidation contributed to reduced cyclicality. The top 10 steel-makers represent about 28% of global production, Besides Arcelor Mittal, four of the cop 10 are in Asia, three in Europe and two in the U.S. In addition to China's plan for consolidation, many of the leading steel producers have ambitious growth plans that will encail further consolidation. Lakshmi Mittal, the CEO of Arcelor Mittal stated in June 2006 that winning companies in the steel industry will have somewhere between 150 m-200 m tons of annual capacity by 2015 and that scale is crucial in the pursuit of value 3. This section is based on Deforche, Filiep, “Beyond the Boom: The Outlook for Global Steel”, Boston Consulting Group, February 2007,case 12: Tata Steel: The Bid for Corus 205 Shanghai Baosteel, which, although founded in 1998, is already the world’s fifth largest steel-maker producing 22.7 m tons in 2005. The potential acquisition of Corus by Tata Steel would create « new entity with a production volume close to Baosteel’. Exhibit 3 provides a list of Global Steel Manufacturers and a brief description of top five steel companies. Exhibit 4 provides a comparison of financial indicators of major steel firms. Tata Steel Background “Tata Steel is the largest, flagship company of the Tata Group of Companies, headquarcered in ‘Mumbai, India.‘ The Tata Group is the oldest, largest, most respected industrial house in India. At last count, it had 96 operating companies categorised into 7 businesses, and include India’s largest companies in the fields of steel, automobiles, chemicals, hotels, software, etc. Established in 1907, Tata Sceel is Asia's fist and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel ‘companies in the world that is EVA-positive (Economic Value Added). Concerns over the availability of iron gre and coal, and the resultant volatility in prices, meant that most Indian steel producers had to integrate backwards in otder to have greater access and pricing power over these commodities. “Tata Steel has its own iron ote, coal and chrome mines and reserves (on long term leases from the Government of India), and hence, is largely self-sufficient in most critical raw materials. However, ic does not have the right to export the ores and coal outside India. Its captive raw material resources and the state-of the-art 5 MTPA (million tonne per annum) plant at Jamshedpur, in Jharkhand State, India, gives it a competitive edge. Determined to be a major global steel player, Tata Steel has recently included in its fold NatStecl, Asia (2 MTPA) and Millennium Steel (1.7 MTPA) creating a manufacturing network in cight markets in South East Asia and Pacific Rim counties. The Jamshedpur plant is expected to expand its capacity from 5 MTPA to 7 MTPA by 2008. The Company plans to enhance its capacity manifold through organic growth and investments. The Company's wire manufacturing unit in Sri Lanka is known as Lanka Special Steel, while the joint ventute in Thailand for limestone mining is known as Sila Eastern. Tata Steel's products are targeted at the quality conscious auto sector and the burgeoning construction industry. ‘With wire manufacturing facilities in India, Sri Lanka and Thailand, the Company plans to emerge as a major global player in the wire business. ‘Tata Steel's products include hot and cold rolted coils and sheets, galvanised sheets, cubes, wire rods, construction rebars, rings and bearings. In an attempt to ‘decommoditise’ stecl, the company has introduced brands like Tata Steclium (the world’s first branded Cold Rolled Steel), Tata Shaktee (Galvanised Corrugated Sheets), Tata Tiscon (re-bars), Tata Bearings, Tata Agrico (hand tools and implements), Tata Wiron (galvanised wire products), Tata Pipes (pipes for construction) and Tata Structura (contemporary construction material). The company has launched the Customer Value Management initiative with the objective of creating complete understanding of customer problems and finding solutions jointly. The company’s Retail Value Management addresses the needs of distributors, retailers and end consumers. The company has also Fwrwetatasceel.com| launched India's first steel retail store—steel junction—for making steel shopping 2 happy ang memorable experience, 206 Cases in Corporate Finance Tata Steals profitability ranks among the bes in the industry. It posted comparatively good resus forthe year ended March 2006, Consolidated sales grow at 2696 to Rs. 20,244 crore, Operating margins were a robust 31% in fiscal 2006. Consolidated profits forthe year stood at RS. 3,721 erone an increase of 4%. Te bought NatStecl in 2004 for Rs, 1,313 erore and Millennium Steel for Rs, 674 crore in 2005, In 2006, Tata Sceel was ranked once again the best steel making company in the world by World Steel Dynamics Inc. USA (WSD) based on « study of 22 world class stel-makers—consecutvely for the second time. The WSD report of February 2006 covered the study of all the leading steel ‘manufacturing companies across the globe including POSCO, Arcelor, Nippon Steel, Bao Steel, Thyssen Krupp on 20 different parameters. Emerging out of the study, Tata Steel was ranked fire with a weighted average score of 8.51 as against a score of 8.11 in 2005. POSCO of South Korea followed in the second place with 8.41. Tata Steel has been continuously marching towards becoming 4 global steal enterprise and aspires co become a 15 MT steel producer by 2010. Its also developing a defp-sea port in Orissa along with Larsen and Toubro to facilitate the flow of inbound and outbdund commodities, Apart from the main stect division, Tata Steel's operations are grouped under strategic profit centres like cubes, growth shop (for its steel plant and material handling equipment), beatings, ferro alloys and minerals, rings, ageico and wires ‘Tata Steel has numerous joint ventures and subsidiaries. Among them are # Tinplate Company of India = Tayo Rolls = Tata Ryerson Tata Refactories = Tata Sponge Iron = Taca Meraliks Tata Pigments = Jamipol + TM International Logistics # mJjunction services = TRE . = Jamshedpur Utility and Service Company (USCO) The Indian Steel and Wire Products (ISW?) = Lanka Special Steel Sila Eastern Company Exhibits 5 and 6 present the consolidated balance sheets and income statements for Tata Steel,Case 12: Tata Steel: The Bid for Corus 207 Corus Group Background? Corus was formed on 6th October 1999, through the merger of British Steel and Koninklijke Hoogovens. Koninklijke Hoogovens was founded in the Hague to enable the Dutch industry to become less dependent on imports. In 1990, the Hoogovens group had five divisions; Steel, Aluminum, Technical Services, Subcontracting, and che newly formed Steel Processing and Trading. In 1999, the trend towards greater rationalisation in the European steel industry led to the merger discussions with British Steel. At chat time Hoogovens had 17 business units with a turnover of 4.9 b Euro. ‘The British Stcel Corporation was formed from the UK's 14 main steel producing companies. In 1987, the UK government formally announced its intention to privatise the British Steel Corporation. ‘The British Steel Act 1988 transferred the assets of the corporation to British Steel, a company registered under the Companies Act. The early 1990s saw reduced demand and it was not until 1993 that growth in the UK economy gradually gathered pace and was reflected in a partial recovery in steel demand and prices. The trend continued into 1994 and helped by continuing efficiency and productivity gains, British Steel returned to profit. ‘On Getober 6, 1999, the merger of Hoogovens with British steel to form Corus came into effect. Corus has manufacturing operations in many countries with major plants located in the UK, The Netherlands, Germany, France, Norway and Belgium. The company produced around 18 million tonnes of crude steel in 2005, which represented approximately 10% of total EU production and positioned the company as the 9th largest steel producer in the world and the 2nd largest producer in Europe. Corus produces carbon steel by the basic oxygen steelmaking method in the UK at Port ‘Talbot, Teesside and Scunthorpe and in The Netherlands at IJ muiden. In addition, carbon stee! is produced by the Electric Arc Furnace method in the UK at Rotherham. Corus has approximacely 50% of the UK carbon steels market and around 11% of the European (including UK) carbon steels market. In 2005, Corus generated turnover of £9.1 billion and produced 19 million tonnes of steel and delivered over 0.6 mt of aluminium. At the end of December 2005, Corus had 47,300 employees. From October 2003, Corus has been structured into four main divisions: Scrip Products, Long Products, Aluminium and Distribution and Building Systems. Corus has a strategy focused around carbon steel, with the intention of: ‘© Ensuring that upstream steelmaking facilities are optimised and that the leading position of its 1J muiden site is maintained. © Pursuing selective growth of downstream businesses ‘¢ Sccking opportunities to part pate in the ongoing consolidation of the world’s stecl industry. Following his appointment as Chief Executive of Corus with effect from 1 May 2003, Philippe Varin carried out an intensive and detailed review of the Group's acti ies. As a result, a number of key initiatives were launched, known as the ‘Restoring Success’ initiatives. These focus on jrusgroup.com208. Cases In Corporate Finance introducing new leadership and instilling a new corporate culture across the Group, aligning the financial resources available to the Group with its future strategic needs, and returning all parts of the Group co acceptable levels of profitability. The latter will be done by building on our ‘Restoring Success initiatives—existing cost reduction programmes, implementing restructuring proposals for the UK asset base and initiating Group-wide efficiency measures. Restoring Success The Restoring Success programme, launched in June 2003, was designed to deliver a £680 m mprovement in earnings before interest, tax and amortisation by the end of 2006.° During 2005, the company continued to make good progress and achieved approximately 80% of the overall target, Apart from savings through cost reduction and improved operational efficiency, action plans are also focused on improving our safety record and achieving best in class customer service, * Safety—During 2005, Corus saw a further 24% reduction in the frequency of lost time injuries, a good lead indicator of performance. * Service—As part of its Restoring Success programme, Corus set out to improve the percentage of deliveries made on. time, from 74% in 2003, to 90% by the end of 2006, Significant and ststainable progress was made in this area, with 85% of deliveries having met this target during 2005. * Savings—By the end of December 2005, Corus had achieved nearly 80% (£555 m) of the £680 m per annum savings that it had committed to deliver by the end of 2006. The Group’s aim is to close the competitive gap that currently exists between Corus and its European peer group. Corus estimates that this gap in 2003 was some 6% at che EBITDA margin level (Le. EBITDA to turnover) when measured against the average of its European competitors Full implementation of the ‘Restoring Success’ initiatives above is designed to close the current competitive gap by the end of 2006. Exhibits 7, 8 and 9 present the consolidated financial statements of Corus group. The Corus Acquisition Opportunity Corus’ half yearly operating profits in 2006 dropped by 37% to £305 m in comparison to 2005 because of increasing raw material costs, Prices for raw materials such as ion ore, coke, coking coal and scrap have risen dramatically since 2002 (sce Exhibits 10 and 11 for input costs), In the case of iron ore, three companies—BHP Billiton of Australia, Companhia Vale do Rio Doce of Brazil and Rio Tinto of Britain control more than 70% of the export market. The company expected the raw material cost to be 400 m more in 2006 if the prices increased at the same rate. Philippe Varin announced in 2 press conference, “We identified the need t0 have a strategic partner and a presence in a lower-cost country with a growing economy and raw material availabilty and where we could use and fully exploit our technology. As to where, we bad an initial focus on Brazil, on Russia and, ofcourse, om India. Our subsequent travels and discusions in the past year were 6. Tata Steel Finance webcast, October 20, 2006.Case 12: Tata Steel: The Bid for Corus 209, aligns and comprehensive. Indias wih is siog and growing economy indigenous raw materia ring cmtaner demand and infastractre needs, pls the contr long relationship with the UK, was always a favoured lcarion, Philippe and L mavlled to India to meet Ratan Tata and his team in November of OOS, Over ihe net several manths, wwe bad several meetings, and our respective teams examined various ‘sins options, fom JV Goins venture) to new plants and technology eraser: Te became increasingly clear thatthe ber long-term solucion could ony be relied through « complete merger of our two business the resus of which 4 td emnouncement, which caries the ananimous recommendation of iy Board This will be a unique global partnership"? “Tara Steel has high quality captive sources for its raw matcrals and has nearly 5 m tonnes (mt) of capacity and less than 0.5 me of value-added steel expacity. Corus steelmaking capacity, by conse saan aaig me, Tc has no captive sources For raw materials, buc has signficane capacities in vali: s lded steel, While for Tata Steel Nat products form 69% of its production with long products forming ieee ce 319%, Corus has flat products accounting for 42% ofits total production and a significant 519% coming from its distribution and building systems division, tha isa value-added segment, “The Corus management team led by Jim Leng and Varin approached the Tata Stcel Board and top managéent for a possible acquisition, On October 17, 2006 Tavs Steel announced chat it is in {ecussions with the Board and Management of Corus Group Ple and it has made an indicative non~ binding offer 1 acquire 100% equity in Corus Group Ple, through a recommendatory offer roure3t 455 p. per share in cash amouneing to an Enterprise value of approx. USD 10 billion ‘A key objective for Tata Steel in this acquisition was gaining finishing expertise in Furopetn markers where i ean export semi-finished ste from its plants in India Te could also shift part of che TReckmaking capacities to India, where it is already planning a massive expansion, Muthucaman, che Managing Director of Tara Steet explained: “The cash cost of Tata Steel is around $160 per tonne. I believe thatthe cost at Port Talbor (where Corus has plant) is pethaps roughly rice of that. Between the two teams, we see potential for significant aynergis inthe area of manufaccring, in shared services, in logistics in the markerplace, sharing best practices, We do see significant synergies and a possibilty of cost reduction Exhibit 12 presents a comparison of steel making costs around the world. STRUCTURING AND PRICING A DEAL Financing Structure Financing India’ largest leveraged buyout comprised of a $3.88 billion equity contribution from Tara Sul fly underitten non-recourse debe package of $5.63 billion, and a revolving credit ficiicy of $669 million. ‘As per the acquisition plan, a special purpose vehicle, a wholly owned subsidiary, called Tata Steel Ure awa be set up by Tata Steel The acquisition was proposed to be effected under section 425 of the English Companies Act 1985 and upon approval from the Corus sharcholdes, Tata Steel UK rould offer a price of 455 pence per Corus share valuing Corus at £4.3 b ($8.04 b). This price 7. Tara Steel Finance webcast, October 20, 2006.210 Cases in Corporate Finance represented a multiple of 7.9 times the EBITDA of Corus from continuing operations for the twelve months to July 1, 2006, The acquisition was to be structured as a 100 percent leveraged buy our funded through cash resources and loans raised by Ta Steel and che SPV. Under the plan, ‘Tata Stee] UK would arrange a loan of £1.6 b ($3056 m), a revolving credit facility and a bridge loan and the rest would come from Tata Steel (to the SPV), Tata Steel appointed Credit Suisse, ABN Amro and Deutsche Bank ¢o arrange financing, OF the 43.3 billion of financing being raised at the SPV level, Credit Suisse would provide 45% and ABN AMRO and Deutsche 27.5% cach. The $1.8 billion bridge debt being raised at the Tata Steel level in India would be shared between Standard Chartered and ABN AMRO. The financing structure and the break up of sources are shown in Exhibits 13 and 14, Operational Structure One of the biggest concerns Tata executives had was whether the inevitable cultural conflicts between the organisations would pose significant operating problems. Integrating a large company that operated on a different continent with diverse cultures and operating environments was going to be 20 sthall task, Exacerbating this problem was the fact that Corus itself was formed by the merget of an English and a Dutch company that had different cultures and profitability. jons, Tata Steel announced its intention co the senior management of Corus. Appointments to the Tata Steel and Corus were to Provide common platform for strategy and integration. According to the plan, Ratan Tata would be the chairman of both Tata Steel and Corus and Jim Leng would serve as deputy chairman of Tata Steel and Corus. Three board members (including the CEOs) of each company would serve on the other company’s board. A strategic and integration committee comprising of Ratan Tata, the CEOs and senior management professionals of both companies was formed to develop and execute the integration plan and further growth plans. Appropriate cross functional teams were to be formed to execute the integration plan, In line with the Tata Group's approach to acqui continue Strategy Muthuraman, the Managing Director of Tata Steel had a number of things to consider in negotiating a deal for Corus. First of all, Tata Steel could not make an all cash offer and assume the assets and liabilities of Corus on its balance sheet because of the sheer size. Second, both companies had to convinee their shareholders about the strategic and financial benefits to the companies. Shareholders would be concerned about the size of che premium and the potential dilution in earnings per share. Muthuraman explained in a conference®: While we have been talking about strategy in this world of consolidation and growing in sie, both in Seosraphy and in size, Tata Steel bas been planning is long-term serategy. Tata Steels rrategy, in terms of ‘what it wanted todo over a period of time of 10 year, benween 2002-03 and 2015, was to grow from four tnillion tonnes per annum, which we were at that time, t0 about 30 million tonnes plus, beyond the shores 8. Tata Steel Finance webcast, October 20, 2006,Case 12: Tata Steel: The Bid for Corus 211 of India, multinational, and continuing 10 bbe in a low-cost position and continuing to be EVA positive. "That strtegy had sx elements. One of them soas that we ‘would build @ strong base in India, which is why were expanding Jamshedpur from five ro 10 million, and we're building three greenfield projects. The second part of the srategy was thas weld adopt de-integrared strategy where we believed that the word steel industry, over she last 150 years or 80, had adopted a certain model of making from iron t0 finished stel in one location, irrespective cof where the raw materials were. We always believed that this vyadel will change, because steel has 10 compete with other ‘materials and, for the sustainable competitiveness of tel, i is necesary that this busines ‘model will undergo a change. We wanted to be at the forefront of thas change in business model, s0 we ‘said we would look for private steelmaking in ioe ers are veh in rn ore and coal orgs. So, we thought of plants in Inde, we thought of plants in Bangladesh, and we shought of plans in Iran. The third part of the strategy was raw material security Its important that we have raw material security tobe competitive and sustainable in this srorld. We have raw material seeurity on a 100% basis for ‘our existing operations in Jamshedpur. We have a large extent of self-sufficiency for coal. Each of our three greenfield projects in India will carry with ie raw ‘naterial iron ore security. We have some strategic types ‘and soine strategic positions in terms of coal and limestone beyond rhe shores of India. We said we should SEE {Ovtput in million metric tonnes crude steel; the country/region of producer's basing specified in brackets) Rank Capacity Company Market Share % 30 Maal Ste! Comany NV (Global) 456 “67 ‘eer (Europe) 415 220 Nippon Stel (Japan) 282 305 POS0O (South Kora) 2% 239) FE (lapan) 285 238 ‘Shanghai Basteel Group Corporation (China) zie 195 United Siaes Stee Cemoration (Unie Stats) har 184 ‘Nucor Corporation (United State) 189 162 (Corus Group (Europe) 159 175 Five Group (Europe) 159 vies) “Tajsbenripp (Germany) 150 81 Tangshan (chin) NA 438 Evra Holding (Russia) NA 137 ‘Gewau (Brazi) NA ‘0 Sevorsal (Russi) NA’ Source: International Iron and Steel Institute. DESCRIPTION OF TOP 5 PLAYERS Mittal Steel Company N Vis the world’s largest steel producer by volume, and also the largest in turnover. CEO Lakshmi Mittal’s family owns 88% of the company. Mittal Steel is based in Rotterdam but is managed from London by Mittal and his son Aditya. It was formed when Ispat International N.V, acquired LNM Holdings NV (both were alteady controlled by Lakshmi Mittal) and merged with International Steel Group Inc. {the remnants of Bethlcher Steel, Republic Steel and LTV Steel) in 2005. On 25 June 2006, Mittal Steel decided to merge with Arcelor, with the new company to be called Arcelor Mittal, The merger has been successfully approved by shareholders and directors of Arcelor making LN Miteal the largest steel maker in the worl. “Arcelor S.A. is the world’s largest steel producer in terms of turnover and the second largest in terms of steel output, with a tumnover of €30.2 billion and shipments of 45 million metric tonnes of steel in 2004. Ie is registered in Luxembourg, with its headquarters located on Avenue De La Liberte, in Luxembourg City. The company was created by a merger of the former companies Arcelia (Spain), Usinor (France) and Arbed (Luxembourg) in 2001. On 25 June 2006, Arcelor announced the decision to inerge with Mittal Steel Company, with the new company to be called Arcelor Mita, Nippon Steel Corporation (Shin Nippon Seivetsu Kabushiki-gaisha), also referred to as Shinnittetsu, was formed in 1970. Following che merger of Mittal Steel Company and Arcelor, itis now the world’s second-largest steel producer.218 Cases in Corporate Finance The Pohang Iron and Steel Company, ot POSCO, is the third largest steel producer in the world based in Pohang, South Korea, Currently, POSCO operates two steel mills in the country, one in Pohang and the other in Gwangyang. In addition, POSCO operates 4 joint venture with US Steel, USS-POSCO, which is located in Pietsburg, California. Along with Samsung Electronics, POSCO i, viewed by many Koreans as a symbol of national pride and ‘can do’ spirit. With the steong Korean ship building and automobile industry dependent on POSCO for stecl, it has been seen as the bedrock of Korea's industrial development over the past 40 years JPE Holdings, Inc. is a corporation headquartered in Tokyo, Japan. Ie was formed in 2002 by the merger of NKK (Nihon Kdkan Kabushiki-gaisha) and Kawasaki Steel Corporation. JBE’: main business is steel production, although ic also engages in engineering, construction, logistics, and chemicals. The company also operates several overseas subsidiaries, including California Steel in the United States, Fujian Sino-Japan Metal in China, and Minas da Serra Geral in Brazil. NKK is part of Techine since 1999. mpany Net Sales op Potitenne (8) Hel Income HOS % MAE Cap (6m) ie ian g ‘i Senate resco Bue 0 = was Beoshan iron nea? 145 ages: a ag,7b8 vs on " io eat Wie ses s teas SR a oor company OR% ROE —-EvIMT@)—O«w/E~*~*«SBSC«RV TOA ‘Aoeior Mittal 68 wt 1192, aK 2K 73x ed fe RA RUB Use ws ate SL ear aman aees sea SS an eee Markt share % aaa oa aR >osco am eam ite j Source: Goldman Sachs, Companies and Case writer estimates, Notes: Currency Unies- Arcelor Mittal, U $ Steel, Nucor in $m, POSCO in KRW billion, Baostee! in Rmb ms Thyssen Krupp in €m, Results are for 2006 for all companies except Baosteel, which is for the First half of 2006,wsnbies Paid-up equity capital 553.67 553.67 369.18 369.18 eons ae ee a Se Pioneer «else eres a oR pe SEM en ante om gnc ecco eee | Ass | sapgeaate saan omer at oso | Delerred tax assets 759.40. 777.99 650.60 836.52 os ee er ‘Stock real estate 0:00 0.00" 0.00 0.00 ae ot apart g~88 fa ‘Deposits with govt. / agencies 397.83 299.71 187.42 164.54 ‘Intangible / DRE not writen off “26851 202.22 155.97, 0.00 10, Terore is 10 m. Iti customary in India to quote curteney in crores rather than millions.220. Cases in Corporate Finance Exhibit 6 SEM Ce Renna ee Muerte ence Onis Mar 2006 Mar 2005. == Mar 2004 = Mar 2003 Ineo Seles sri36.08 987077 12656.73, 0516.72 (ther income 281.95 159.82 34.60 64.08 Change in stocks 04st 239.58. 2031 5.08, Non securing income 163.96 277.98 182.48 0.26 TOTAL INCOME ‘To66.80 6597.62 13056.10 10696.08 Expenditure Faw mates, sores, ot 762.03 3641.78 susa.as 2984.00 Wages and salaries 1361.51 1281.00 1340.58 vain. Energy (power and fue) 80787 778.30 724.02 707.75 Indirect taxes (excise, etc) 206048 4467.90 1261.38 ‘107.12 Advesing & markeling expanses 80.75 85.18 81.90 87.19 Distribution expenses 00422 936.68 748.44 60577 Ones 2385.79 2311.34 1990.73 623.74 5s: expenses capitalced 11282 204.02 181.04 60.79 Ronrecating expenses 4114 50.05 ant 43.43 TOTAL EXPENSES 1167621 07472 9808.79 008.41 Profs loses BOIT wise 5280.04 3548.99 2008-28 Frnancial charges (in. ease ent) 175.70 2128 288.96 362.52 aot ‘e010.29 ‘6018 76 3292.08, 1848.73 Depreciation 733.96 B1a78 625.11 570.94 PBT S806 27 5428.98 2566.02 ‘21678 Tax provision 1709.80 1985.82 82070 252.48 AT 3506-38 ‘arate 1748.22 101291 Aprepiation of profits Dividends 20.43 82197 41628 88.01 Retined eaniags 2685.95 2852.73 1329.97 679.30 Source: Prowess. esi? ee eo “4 = Source: Annual reportCase 12: Tata Steet: The Bid for Corus 224 eqn Corus Consolidated Income Statement (Em) 2006 2005 2004 Gop Te ors ones wr Tol opm ts a2 812 -n86 iu epee prct “7 es 7 ance cous 102 ia 2 Finance reane “ u te Saf gx, prt ot ont vrs 2“ 1 2 dn abst wndtakgs Profit ar ton 318 6 sa Takao 18 a6 ae Fro tan fon coring arate ‘m4 «2 08 Prt aes tox Fon catnd opraons s is a Pt ar waton Pa 461 4 Abo shh of pare 20 we “7 ory ress 8 a 4 2 “i “1 Bik cag per oda eae om crtnng op pees) 2.04 4018 «i Died exmings pr onary sae cen op. Guns) 20.8 021 wa Source: Annual report Chto 2006 2005 2004 ‘Gash Ginoraied fom Operators 578 9 sma ‘Ne Gash Flow fom Operating wet 125, 657 288 [Nal Cash Flow fon Investing Act 99 A 200 Net Gash Flow financing actives ou 38 58 (Ceprese)tncrase in cash and og 20 270 218 Gash and equivalents at he begining 2b 67 0 (Gas ado a he end 788 & aT Source: Annual report222. Cases in Corporate Finance a TI 5: SE aR 2 TSR HIRE NE 2005 ft 56.80 2270 65.00 162.20 200-210 2005 me 5350 65.00 182.20 200-208 eee Senate ee Sanaa 1 SAGAS AIRDRIE Us S/hour 2000 2001 2002 2003 2004 ‘Rial 4a 133 184 198 24 i Brazil as 3 26 27 3 Canada 165 (62 167 to4 2a China os o7 08 09. 1 Grech Hopubis 28 ‘af 38 47 54 France 155 187 171 ai 28 Germany, i 25 242 as 25 ‘eda 06 06 07 07 08 daly i38 iss a5 184 205 TT. Nowes (1) Coal is Australian thermal coal, 1200 beu/pound, less Kembla, USS per mettic tonne an 196 sulfur, 149% ash, Fo.b, 0: a SE Electricity us Cents/kWh an 508 523 554 501 504 504 509 518 543 | 525 523 | 526 | 530 | 598 | 579 | Site International Labor Cost Comparisons 2005 26 32 | 27 1 64 253 8A 08, a7 (Contd) stle/Port (2) [eon ote is 67.55% iron content, fine, contract price co Europe, FOB Ponta da Madeira, US cents per dry (3) Natucal gas is Russian nacural ga border price in Get many, US$ per thousands of cubic mecers of gas,Case 12: Tata Steel: The Bid for Corus 223 (Exhibit 11 contd) us S/hour 2000 2001 2002 2003 2004 2005 Japan 2 194 167 23 210 aia Kazakhstan 08 07 a7 09. 09 i Korea a2 a 88 0 115 144 Moxie 22 25 26 25 28 28 Spain 107 108 118 18 tn 178 Sweden 2 84 22 252 284 207 Taiwan 62 81 56 57 6 64 brain 03 04 os 07 07 oe Unies Kings 18:7 168 183 22 247 26 ‘Uinted Sates 197 205 aid 228 232 238 Source: U.S, Department of Labor, Bureau of Labor Statistics. 2005 and all other estimates by Metals Consulting International Limited (MC). Exhibit 12 RQ Eun Renae Country Pre tax Total cost (S per tonne) | we 48 | Japan 5 | uk an anaes m rsa 335 Taiven 6 | os a onise a Production Cost Slab Cost (5 per tonne) North America—base 100 Ney Arie coer Europe 100 pane 6 re * hind @ ine a Source: Tata Steel, World Steel Dynamics,224 Cases In Corporate Finance es + ESS Tata Steel 100% ‘Tata Stoo! Asia Holdings Pre Lid 100% Tata Steel UK Ltd 100% } Conus Group Plc Source: Tota Steel. [cnmEy Funding Break Up tn Rupees Crores Source Equity Debt Total imal Geneon 3000 External Commercial Baronings 2it6 Prot Shao Isue Tata Song 2.770 Fight Issue ot eq shares 9,655, Fights Isso of Convertle Profeehee Shares a0 Fersig issue of an onuly-lated Insrurintin such for a8 may be condor appropiate 1,805, Total Footy 47780 ‘760 Lang om norecouree eb om contain of ais amit 2o8e ‘Mer cesnaeing wer (Quasi - qty nding at Tata Stoo Asia Segapore sate 5412 Long term Coit undng at Euity- $2056 m Bridge/Mezzanine Dobt- $1824 m ‘Acquistion Debt- $1824 m Senior Debt- $3056 m High Yield Debi- $2579 m Rovolving Credit Facilty- $869 m tn Million Dollars Equity 700 Pounds Equity Debt Total a0 640 ia 4000) 08 187 4874900 3620. 3,170 seat 237 507 5,194 Debt atta 5a7T 1.250 Total soo) 6.10) ost 41250 (conte.)Case 12: Tata Steel: The Bid for Corus 225 (Exhibit 14 Contd) tn In In Rupees Million Milli Crores Pounds Dollars Source Equity Debt Total Equity Debt Total Equity Debt Total Tita Steet Asia Singapore 604 6,104 = 410 1.410 {7760 35.000 s5e4e 1607936205807 4,100 6.600 12,900 Source: Case writer. Notes Figuces ac 4, 5 and 6 above are approximate estimates sourced from Company Press Releases. Actual amounts may vary slightly. For above, Tata Seed is raising debe equivalent to amount at 2 above, which is ‘would be raising additional equity share capital of the face value in the range of about Rs. 250-280 crores Uepending oa the final pricing of the various issues. This inrease in the equi capital wll eome into effect only in stages during che three financial years 2007-08 to 2009-10 which will cherefore ease the burden of Servicing, Phe post-tax cat of thie rotl financing package Fo equity contibucion is expected co be 4.396 pa 12 of total amount. Taca Stee! Item a¥8 above reduced to GBP3170 million after refinancing vide Press Release dated 3 May 2007. Sinlultancously, Equity has gone up by GBP 450 million due to additional equity provided by Tata Stel/ Tata Steel Asia Pe eed Distribution of Production and’Distribution Facilities.of the eae sulisy Country Facilities (UR a ka “Prion use Stoel Capacity: 4 mpa 6 manutacuing plans £38 atibution cones EU (exe. UK and Neto) ‘Wimanulzolutog plants 19 esibuion canes heron ‘production 18.8 mipa capacly #5 manulagtrng leatons 8 distrouton cones USA 2 manuleotuerg 2 detibaton ni 1 precio toaty 5 ipa cap zelisfoution cones Traiand 8 production 4.2 ipa capac 3 estibuon conto: South ab Asia 1 predation tai 06m pa 1 ition cones Source; Tata Steel226 Cases ia Corporate Finance ieiara The Corus Acquisition Economics 5 Oct 04 Ateelor cst UAmerica 38) a 2 BIT on 569.06Case 12: Tata Steel: The Bid for Corus 227 | tees Trading Multiples of Major Steel Firms: 2007E P/E Multiples (x) | Company Multipte | Nucor 7 | Tayesenkropp 103 | US Sioa! oy | conus 8s Nippon Sto 89 SFE a8 Posco 87 ‘cle Mita 50 | | Average 55 } Source: Arelor Mita | ietieiaiey Forecasts for Tata Steel | Adpumptions } 20064 2007 20086 2009 Seabee! ke voline 1a 436 a7 se “ennge Yo" 122 103 64 87 Average Raza (ton) 2088 2070 2a 299 tet evnuss eos it 4098 15902 Inpitad Coking Cel Cet (tan) coon esto soor 4088 Cale ate 36 3 Po a Free Cash Flow Components (Rs m) Net Ses ‘stood irises ‘oes ‘a08i6 EBITOA sora7 008s 41909 ‘5017 epi fal 701 78 785 Not Fg sets rove 41699 79595 120088 | at Curent ass 189 2098 2083 sc89 2% | 26400, Source: Morgan Staley, Feb 1, 2007 ABN Ameo Forecast (asm) 2006 A 2007 A 2008 F 2009 + 2010 F ovenve 204910 6518 ss7e08 sina ssezer Goat ot nes 199081 “176 9448 0st “1001209 EBITDA sao sera 140068 or 94 Depwcsion 88087 o%ta 8850 085% “9785 for frase erro 140089 sore io4i04 Capex 19028 2500 220 ists “£1400 Champein we 71447 55708 rien 8407 17957 Source: ABN AMRO Research, June 14, 2007,228 Cases in Corporate Finance sie 20 SISSIES India and Tata Steel UK and Corus Group 10 YearT Bond Rate m% 40% Markel Alsk Premium o% asx? Beta (Tata Stee) 112 1,56 (Cori Coat of Debt 75% of Equity 5 4% of Dott 55 Tax rote 3.1% FX rates using average appreciation/depreciation (Rs) 2003-04 2004-05 2005-06 Spot Rete™ 714 82.96 m2 8573 Exhibit 21 BRR Mere aes lover 5: Tata says “considering id for Cores f= Gotober 20: Conus ages 455 p a share ofr om nda’ Tat Soo, valuing tho group al £43 ba. But Senders Li the largest investor Corus, wih a 78% stake, says thinks the tems are too lw. 1 October 26: Sir Anthony Bamford, ore of Bah’ lang indus, says he ogres that Tala’ etd is 00 fw ‘and tat it would damage Brians manfecuing industry. ‘= November 3: Aussi's Savrstal rule Hel out 2 2 sal bidder. November 17: CSN announces iccave bid of 475 pasha November 27: Corus paipanes Extraotdary General Meting wich was 1 vote onthe fist Tala del to alow CSN more tne to formalize es oer. November 28: Core reports 60% age i tis-uate profs on the beck of Bearing European demand fr sta, December 10: Ina lte night announcmat aa Stel us is ofl o 500p a share, vaing Corset £47 bn, ‘© December 11: CSN ris is tems to 515 p, ving Cons at £49 bn. Cor doctors swith te econmerdtion to the Brazlans, 1 December 19; The Takeover Panel imposes a vanuary 30 deadine on Breziian group CSN and is Ian thal Tata to launch a revised desl fox contel of Cons. Cous shares are stl ahead of th CSN terms, 529 p f= an 2, 2007 Tatas decide to rae ls bi for Cores by 10% to $80 p alter several meetings wih its bankers in @ deteeingd attr adele a aloe om Bra 12, This is the result of a study by Elroy Dimson, Paul Marsh and Mike Staunton of the London Business School. 13, Based on the stock prices in the last half of 2006 to March 30, 2007. 14, Spot Rate is on October 1, 2006 |(Case 12: Tata Steel: The Bid for Conus 229 faiieesg City Code:on Takeovers Mergers (UK) ‘The Cy code applies al sted! and united putilc companies, and also some private ones which have had shares listed onthe London Stock Exchango wihin the grevious ten oars. t also protects shareholders lnvlod inthe bid. The Clty Code on Takeovers and Mergers was lest fly revised and reissued in July 200, ‘The code sls out General Pririples and i enerced bythe Fane on Takaovers and Mergers. The panel isa sltzegulaing body Homever, decisions are subject to usa revi. There may also be some lglimate doubt as to whether the Pans structure is compat wih Ar (1) of he European Conventon on Humn Fights. The code's objectives ae as toons s+ Equality of veatmont of shareholders; Equaliy ad suiciency of cislosute fr sharehodes; Careul and responsible corsiceaton of he terms othe ole by the olor company, Provenion ofthe eeaton of false marks; Acceptance ot ection ofthe ofr by shareholders ofthe target without interarene of selfish eevee by then Board ot Dios; and |+ Proper organisation of persons acting ogee o nsut they can a ful her obligations unde the ole. ‘The oe ays cow that: = The acquire of 80 percent of he shares ofa company wihin the code must make an ofr to all the Holders of voting shares = Yite pce st which ho ctla is tobe mado I the highest st whch the target compan’ shares have been del it by he ctror | within he 12 mont precoding the acquision of the 30 percent stake. ‘The Subetaal Aequiions ues re concerned wit the speed of acquison and dslosue requirements where shares (and tights orc shares) ave requed which corfer 15 percent fo 30 pet cent of te ving power in pub company whose shares ae de with on eer the London Stock Exchange or the AerativeInvestnent Marke. These rls ae enlares bythe Panel “he sant fears of he code are discussed teow 1. A sharoholdes of he same cass ofan offre company must be treated simiary by an oferor 2. During the couse o! anole, of whan anoles in cortenpatn, nether an ofr, rath oferee company, nr any of tei respective adigers may lush information to some shareholders whichis not made avaible to al sareholérs, Tis principe des nt apply fo te turing ef farmaton in conenoe by te clleror company to a bone Re poten ferro: Vice versa; {3 An offeror shoud only anncunce an ofr ait the most caret and responsible coridoaton. Such an announcement should bie made enly wren te oferr has every reason to bellow tat it can and wil coninue tobe able to implement the oer tesponaalty inthis coonecton als resis onthe financial adviser tothe oferor 4, Sharehoidere must be gen sulent naman and advice to enable ther 1 each propery nkrmed decision and must have suffice tn todo go. No relvant information shoud be withheld rom them; ‘5. Ay document or everisementaderseed to charade cating infomation of ata from an ofr or the boa of he ‘oferee compary oF ter respecve advisers must, a the case wih a prospectus, be prepared wit he highest stands of cara and accuracy, 6, Al partes to an ofr must use every endeavour to prevent the cretion ofa false market inthe secures ofan ofeor or he ‘oferee company, Paes ive in oer must take care thal stalements are nol made which may mislead! shareholders o& the markt 7. Ao tina ater & bonafde fer hasbeen communicated tothe bos ofthe oferse company, of ate the board of he ores ‘company has reason to belive thal & borate afer might be Imminent, may action be taken bythe board ofthe offeree ‘company in laten tothe airs of th company, witout he approval ofthe shareholders in general meting, which could ‘ellectvely rest in eny bonafde ler being tustatad rin the shareholors boing denied an opperuniy to decide ons mils 18. Pights of contr! must be exercised In good fear the oppression of a minority is wholly unaccepabio; 8, Directors ofan afer and the afferee company must ays, In advising tei sareholdes, act only n thelr capacity a8 ‘rectors and nat have repre to thal pessoal or famly shareholdings or To thor personal relationships withthe companies. (Contd)230. Cases in Corporate Finance (Exhibit 22 Conta.) Is the sharholes' ness ten asa whole ogeer with those of employees and credhors, which shout bo considered ‘hen the drectors are giving avis to shaeholdrs. Dieters ofthe offer eoripany should give carelul consideration bole they oer nt any coneiment wth an ofr (or anyane ese) wich would resi ther feodorn to eds thlt shareholdes in he future. Such commen may give se o confts of iret or resin a breach of the cecters? ‘iuciary tes; 10. hare con! ofa company is acguied by a person, of persons acing in once, a gonoral ole oa chor sharehlders is ‘omaly routed; sir olgaton may ace if contol conseldatod. Where an ezquion is conlerplated as a rest ‘which a potson may incur such an ebgaton, he must belore making the sequen, ensue that he can anc wil ood {0 be able to Inploment suc a ol, (hibit 23 (Es Tata Stee! sn ‘Side Proddcben (rips) a7 ean Fevenuen $9 46 38 ‘Oparalig Margas % Pe Manulaiuing Latins i Soe (Cost ol sib production (pee i ASE ‘on a8) 180 (TP Giess bebe $m 7535 BR “Nat Dab 0 2566.6 ein ae ey Debve guy (rss) 03 Deb uy (Nel) 00 2005 Teal Ase $n 7187 YP eaten tom operang SRSE -Aettios $x 1757 Nett agi 6 19H Niziiueza Stock Price History of Tata Steel (in Rupees) e024 yom VAM fpraae Ww etoss t 480.95 ; 6,169,277 | nw 4,954,501 13,739,725 2,524,969 bd tsa srrorz008 = asiiro07——2asr2007 ver2007 swvereoo 2014/2008 (©Asiancare.com,(Case 12: Tata Steel: The Bid for Corus 234 oae4eh 90200 L snos S080, 4 so kon se govew ez j sover at 08 AON 94 sodes zi r sore 0 Aen 93, soqesez 020022 coves sz kl roomy at |. rounrss ro.dys . \ vocesy BOAON 82 01002 corre 1500.00 450.00 400,00 1350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 15. Daring 2003-06 the FTSE 100 increased from less than 4000 ro about 6000, Source: London Stock Exchange. (Exhibit 25, 600.00 550.00