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’Corus Bank assets sold for $550m
A group led by Barry Sternlicht’s Starwood Capital investment company has won the bidding for the assets of failed Corus Bank, with the help of a financing package crafted by the FDIC regulator. The purchase price of about $550m values the assets of the US bank – which specialised in loans to condominium projects – at about $2.5bn,
Corus steel deal in jeopardy
Nearly 2,000 jobs at Anglo-Dutch steel company Corus’s plant on Teesside in north-east England were in jeopardy Tuesday night after it emerged that a deal to sell the plant to an Italian company was in danger of collapse. Corus,
Corus to sell stake in UK plant
Corus is nearing agreement to sell a majority stake in a large UK steel plant on Teesside for about $450m, securing about 2,000 jobs at the site. The deal should give the Anglo-Dutch steelmaker some breathing space as it implements a difficult restructuring plan.
Companies cut 76,000 jobs in a day
Corporate bellwethers in the US and Europe slashed more than 76,000 jobs from their payrolls on Monday. US corporate groups such as Caterpillar, General Motors, Sprint Nextel, Texas Instruments, and Home Depot led the retreat,
Job cuts – the details
Caterpillar, the world’s largest maker of construction equipment, said it would cut 20,000 jobs as it reported an annual fall of more than 32% in Q4 profits – a month after slashing executive salaries and jobs at large plants.
Corus and GKN to slash jobs
Corus, Britain’s largest steelmaker, will this week announce cuts of 3,500 jobs from its global workforce of 41,000, with more than 2,000 jobs to go in the UK where it employs 20,000. The announcement,
Tata considers steel asset spin-off
India’s Tata Group is looking to spin off its international steel assets, including Anglo-Dutch steel maker Corus, in an overseas listing that could raise billions of dollars to help bankroll the steel unit’s expansion.
Loan Radar: Three of the biggest ‘headache deals’ for bankers
The most common response among syndicated loan bankers to present market upheavals – and probably to the fact that many have wrapped their deals and are trying to take summer holidays – is to stay cautious,
Banks likely to sweeten Tata deal
Tata Steel’s bankers are likely to sweeten the terms on a £3.6bn ($7.3bn) refinancing package for the Indian group’s takeover of Anglo-Dutch steel maker Corus as a result of the turmoil in the credit markets.
CDS report – concern on Corus bond repurchase
The cost of insuring the debt of Corus against default rose sharply on Wednesday after concern grew that the credit default swaps of the Anglo-Dutch steelmaker could become worthless.
Five-year credit default swaps rose by 10 basis points,
The Real Deal: Curse of phantom bids amid deal boom
The busier investment bankers get, the more extreme their tactics become. So intense is this current deal boom that nervous bankers have been jumping at the sight of their shadows. Like Don Quixote mistaking windmills for evil giants,
Companies work out their response to credit derivatives
In the past few years, writes Gillian Tett, credit derivatives activity has exploded to a level where these instruments usually outstrip the underlying cash bonds on which they are based — often by a factor of five to ten times.
CDS Report: Corus yo-yos as debate rages
Corus was once again in the spotlight in the credit derivatives markets in London on Monday, amid renewed speculation about the future of the company’s debt structure following the planned acquisition of the steel marker by Tata Steel of India.
Fears over Tata Corus debt plan
Tata Steel is likely to buy back existing Corus debt in its financing of the £6.7bn acquisition of the Anglo-Dutch steelmaker, people familiar with the matter said. The move could slash the value of derivatives contracts worth billions of dollars linked to debt previously issued by Corus — and cause losses for the investors holding these contracts,
£6.7bn too much for Corus? Mr Tata would actually have paid more
Rata Tata paid £6.7bn for Anglo-Dutch steelmaker Corus, including debt, and in the process flabbergasted every steel expert and investment banker around. But it seems the 69 year-old head of the Tata dynastry was willing to pay even more:
Tata sees £350m in savings
Tata Steel forecast cost savings of up to $350m a year after it won the battle for control of Corus, a deal that will make it the world’s fifth-largest steelmaker. Tata shares fell 9 per cent on Wednesday on concerns the steel company had paid too much.
Tata weighs up London fundraising
Tata Steel is examining plans for a London listing of global depositary receipts in the aftermath of its £6.7bn takeover of Corus, reports the Telegraph. The move could raise hundreds of millions of pounds to help offset the huge debt burden Tata has taken on to secure the Anglo-Dutch steel company.
Beer and football on Corus bid night
A banquet of Indian food awaited Tata’s deal team, from Deutsche Bank, ABN Amro and Rothschild, when they arrived at Herbert Smith’s offices on Tuesday night, reports the Times. They had a secure line to Mumbai — and a strategy to raise Tata’s offer in 5p increments.
CDS Report: spreads widen sharply in Corus
The cost of insuring debt owned by Corus, the Anglo-Dutch steelmaker, rose sharply on Wednesday on uncertainty following the takeover of the group by India’s Tata Steel.
The company’s five-year credit default swaps widened around 10 basis points to trade at a mid-price of 208bp as questions arose over how Tata would finance the acquisition.
Bhangra beats Samba
Like all sensible financial markets, Mumbai’s stock exchange has shown a cold heart to news that Tata Steel of India has won the auction for control of Corus with a bid worth £6.2bn in total — and promptly taken a sharp knife to Tata’s share price,
Tata Steel wins battle for Corus
Tata Steel of India won the battle to control Corus with a £5.75bn offer, after more than eight hours of head-to-head bidding against CSN of Brazil. Tata was declared the winner with a bid of 608p a share in cash,
Battle for Corus to go right to the wire
India’s Tata Steel and Brazil’s CSN are shaping up for a bruising showdown over Corus that will decide which of them will become the world’s fifth-biggest steel maker. Bankers and analysts are predicting the two suitors for the Anglo-Dutch steel-maker could bid well above the current best offer from CSN of £4.9bn excluding debt,
CDS report: Credit holds firm after Treasuries, stocks decline
European credit derivatives markets held firm this morning in spite of faltering stock markets and an overnight sell off in US Treasuries.
This showed that credit had decoupled from equities – as it should in the continuing benign environment for debt issues,
Iron ore dispute casts doubt on CSN bid for Corus
The bid by CSN to acquire the Anglo-Dutch group Corus for £5.7bn could be blown off course by a legal dispute in Brazil. The dispute, over CSN’s rights to an iron-ore supply that would be crucial to a merged business,
Markets live transcript 19 Jan 2007
Markets live chat transcript for the chat ending at 11:44 on 19 Jan 2007. Participants in this chat were: Paul Murphy (PM) Neil Hume (NH)
PM: Welcome to Markets Live – Alphaville’s daily commentary on market movers.
Deadline set in Corus race
The Takeover Panel deadline of January 30 for rival bidders Tata Steel and CSN to make revised offers for Corus, after talking to both parties, suggests that this remains a two-horse race.
Shares in Corus have fallen back on speculation that Tata would walk away after CSN last week outdid its 500p a share offer with a 515p a share pitch for the company.
Markets live transcript 18 Dec 2006
Markets live chat transcript for the chat ending at 11:50 on 18 Dec 2006. Participants in this chat were: System Administrator (RS) Helen Thomas (HT) Neil Hume (NH)
RS: Sorry for the delay – we appear to be having a technical problem this morning – please bear with us.