New Delhi: Reports by the Wall Street Journal and Financial Times say the Corus, UK based steel giant, has backed Tata's $9 billion take over bid.
According to the Financial Times, the board of Corus, the Anglo-Dutch steel maker, has recommended 5.1 billion pound takeover bid to the shareholders.
And the report says that Corus will make a statement about this, possibly as soon as Friday.
The move will end the chances of any potential counter-bidders for the world's eighth biggest steel maker. Novolipetsk and Severstal, two Russian steel companies, and CSN, a Brazilian steel maker, are thought by some steel industry observers to be interested in making a counter bid.
Corus shares have been trading at levels higher than Tatas' proposed bid price of 455 pence a share since the offer was announced.
This was largely on expectations that another bidder will attempt to trump Tata Steel's deal, but such a move was unlikely since Corus has been exploring for a buyer for most of this year and has previously talked to nearly all potential candidates.
Meanwhile, Community, the British steel workers union sought safeguards on wages and pension for Corus employees. Tata Steel must provide "guarantees on the terms and conditions of employment for Corus' UK employees, particularly on pay and pensions," The Guardian newspaper quoted the union as saying.
The deal, if clinched, would make Tata Steel the world's sixth largest steel maker and enhance the Indian company's capacity to 23 million tonnes a year from just 5 million tonnes at present.
With PTI inputs
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