Severstal denies Corus taekover bid plans

LONDON: Russian steel giant Severstal is not plotting a bid for Corus because it believes its Anglo-Dutch rival is 'overvalued', the Financial Times newspaper reported, quoting Thomas Veraszto, Severstal's deputy chief executive.     

Corus is the subject of a 6.39-billion-euro (8.16-billion-dollar) agreed bid from Tata Steel. Analysts, however, have not ruled out the possibility of other companies launching a counter-offer.    

Veraszto told the FT that Severstal could not justify an offer above Tata's 455-pence a share bid after taking a 'close look' at Corus.

"We think Corus is a good company and there are some synergies which we can see (from the possible acquisition) but we think the company is overvalued," he said.        

"There is no possibility for us making a bid either in cash or shares," said Veraszto, who has responsibility for mergers and acquisitions.

Severstal is in currently arranging a flotation on the London Stock Exchange. When Severstal was contacted by AFP in Moscow, no spokesperson was immediately available to comment on the FT report.