Corus/Tata Steel bid

In 2007, Slaughter and May client, Corus Group plc was taken over by Tata Steel of India following a four month public battle for Corus between Tata and Companhia Siderurgica Nacional of Brazil. The final offer valued the share capital of Corus at £6.2 billion representing a 34 per cent. increase on Tata’s original bid in October 2006.

This value creation was facilitated by innovations in takeover regulation and practice. First, Corus was able to devise a mechanism to allow CSN to make a competing offer by way of a pre-conditional scheme of arrangement, placing both competing offers on a level playing field. Secondly, Corus participated in the creation of an accelerated overnight auction process with the aim of achieving the highest final offer price within the Code timetable. The final offer price went up from 515 pence to 608 pence on this final evening. Slaughter and May’s long-standing and close relationship with Corus included acting on its original flotation as British Steel in 1988 and its merger with Koninklijke Hoogovens in 1999.

"The ability of the company’s management and its long-standing advisers - investment banking and legal - to work together have made for a great outcome for Corus shareholders" Simon Nicholls, partner