"Tata makes hostile offer to acquire Brazilian ore miner AVG" is the headline of a news report that I just finished reading. Just can't believe that they have not stopped with Corus, where the hell are they going to get the money from! Here is the complete news report
New Delhi: After a spectacular takeover of Corus, Tata Steel has made a hostile offer to acquire Brazilian iron ore miner AVG, which is owned by global mineral giant MMX.
The Steel Business Briefing (SBB) quoted a MMX President Eike Batista as saying that "the domestic steel giant has made the offer." Eike, however, did not reveal the value offered by Tata, but said a deal could be made if Tata guarantees it will build a carmaker on the outskirts of Acu Port, the complex MMX is building on the coast of Rio de Janeiro,'' it quoted the daily as saying. If this happened MMX could sell as much as 50 per cent stake in AVG to the domestic steel giant.
However, when contacted a Tata Steel spokesman could not confirm the same to PTI.
AVG was purchased by MMX last year for $224 million. Its current capacity is around 2.3 million tonnes per year, but MMX has already announced plans to integrate this asset into its recently acquired Minerminal mineral company and expand the combined out put to 6.1 million tonnes this year and upto 10 m.t. by 2010, it added.
RK
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