Britain's takeover watchdog set a Jan. 30 deadline on Tuesday for India's Tata Steel and Brazil's CSN to make revised offers for Anglo-Dutch steelmaker Corus Group.
“If a competitive situation continues to exist shortly before Jan. 30, the Panel Executive may require any revised offers to be published in accordance with an auction procedure, the terms of which will be determined by the Panel Executive,” the Takeover Panel said in a statement.
Last week, Companhia Siderurgica Nacional (CSN) announced an agreed $9.6 billion bid for Corus, worth 515 pence per share.
The bid topped a previously recommended offer worth 500p per share from Tata Steel, which is considering its next move.
Corus reiterated in a separate statement on Tuesday that it planned to adjourn an extraordinary general meeting scheduled for Wednesday.
A takeover of Corus by either CSN or Tata Steel would create the world's fifth-biggest steelmaker, producing 24 million tonnes of steel a year.
It would also mark the latest acquisition in the steel sector as companies look for global reach, economies of scale and to secure valuable supplies of raw materials.
Earlier this year, Mittal Steel bought Luxembourg-based Arcelor to create Arcelor Mittal, the world's biggest steelmaker.
For CSN, which lost out last month to steel services group Esmark in a battle for U.S. steelmaker Wheeling-Pittsburgh Corp., a Corus takeover would thrust it onto the global stage at a time when other big Brazilian companies are aggressively expanding abroad.
It would allow CSN to boost capacity and tap into more lucrative markets in Europe, where Corus's distribution network is well established.
