MUMBAI: The difference between Tatas' winning bid and Brazilian steelmaker Companhia Siderurgica Nacional's (CSN) offer was a mere five pence.
It turned out to be the most costly five pence for the storied Indian business conglomerate. Corus Group Plc, code-named 'Project Colour' by Tatas, was won by the Indian group in 2007 after a gripping seven-and-half-hour final bidding.
CSN, codenamed 'Cardiff' during the bidding process, outbid the Tatas by 10 pence a share at every round, while the Tatas, code-named 'Truro', pursued the target by increasing its offer by five pence. To be fair to the Tatas, expanding operations in India was difficult during that time, forcing the group to look abroad for diversifying its business.
About a decade later, in hindsight, the five pence difference between the two bidders has cost the Tatas dearly, as the commodity cycle went for a toss.
- Abhi Patel
email: abhi(at)suncapital(dot)co(dot)in
It turned out to be the most costly five pence for the storied Indian business conglomerate. Corus Group Plc, code-named 'Project Colour' by Tatas, was won by the Indian group in 2007 after a gripping seven-and-half-hour final bidding.
CSN, codenamed 'Cardiff' during the bidding process, outbid the Tatas by 10 pence a share at every round, while the Tatas, code-named 'Truro', pursued the target by increasing its offer by five pence. To be fair to the Tatas, expanding operations in India was difficult during that time, forcing the group to look abroad for diversifying its business.
About a decade later, in hindsight, the five pence difference between the two bidders has cost the Tatas dearly, as the commodity cycle went for a toss.
- Abhi Patel
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