It will take 12-18 months for this dram to unfold. Untill then the shareholders will have to suffer.

Given the amount of debt for corus acquisition and colling of steel pricess globally due to excess suplly from china, i don’t see any immediate benefits to tata shareholders. However it is windfall for corus shareholders. As a next logical step, if combines tata and corus bids on CSN, that would jeopardise shareholders furthermore if steel prices fall and don’t go up for another 2-3 years.

I have refrained from buying the tata steel stock.

Sridhar:

I can see no real benefits for Tata with Corus acquisation. There are fundamental differences in the way the two companies run their business. Where Tata looks for cost reduction Corus looks for maximum benefits. The common ground of agreement between the two companies are far from each other’s comfort zones.

As far as a joint bid for CSN by Corus and Tata is concerned (subject to Corus goes to Tata), I guess the trend is to create behemoths in the steel industry these days. I cannot see steel prices falling in the next 2-3 years.