KOLKATA: Is Severstal, the second-largest Russian steel producer, readying to hold Tata Steel’s hand for the piece of Corus?
With $1 billion in his pocket from a recently concluded IPO listing on the London Stock Exchange and with an M&A specialist from AB Ports, Chris Clark, named as non-executive chairman, Severstal is seen as having the wherewithal to throw its hat into the big fight. Following the IPO — through which principal promoter Alexei Mordashov diluted his 90% holding in the 12-million-tonne steel producing company — rating firm Standard & Poor’s forecast that much of the funds raised may be used for acquisitions in Europe.
A Severstal statement had said the funds raised will be to expand the core business of the company, funding of potential acquisitions and participation in a joint venture. Days after Brazilian steelmaker CSN put in a rival bid at 475 pence a share for Corus, mainstream London newspapers have started pointing out Severstal’s deep pockets post-IPO and the appointment of Clark as straws in the wind of an imminent bid for Corus.
