India's
Tata Steel has raised its bid for Corus Group PLC by 10 percent to pre-empt an expected competing offer from Brazilian company CSN. However, the move has heightened concerns about how the deal might affect
Tata Steel's profitability and plans to build new plants.
Tata Steel shares dropped nearly three percent to Rupees 470 ($10.20) in early
trading on the Bombay Stock Exchange on Monday, just hours after the company said it would pay 500 pence per share to acquire Corus.
The board of Corus on Sunday approved the revised offer, above its October 19 offer that valued Corus at 455 pence a share.
Corus chairman Jim Leng said the new terms were a "substantial increase" on
Tata Steel's previous offer and that the board of Corus would be recommending the deal to shareholders.