Anglo-Dutch steelmaker Corus Group Plc, the acquisition target of Tata Steel, is tomorrow set to announce acceptance of the Indian entity's $8.6 billion takeover offer.
Corus' Board is expected to recommend Tatas' October 17 bid of 455 pence for each share of the company, a Dow Jones report on Thursday said quoting sources familiar with the development.
The deal will include a break-up fee of one per cent of the transaction value, which is standard in acquisitions of UK-based companies.
The report said many of the potentially thorny issues such as clearance from the trustee of Corus' huge pension fund have already been negotiated.
Corus shares have been trading at levels higher than Tatas' proposed bid price of 455 pence a share since the offer was announced.
This was largely on expectations that another bidder will attempt to trump Tata Steel's deal, but such a move was unlikely since Corus has been exploring for a buyer for most of this year and has previously talked to nearly all potential candidates.
The deal, if clinched, would make Tata Steel the world's sixth largest steelmaker and enhance the Indian company's capacity to 23 million tonnes a year.
Corus has a capacity of 18 million tonnes a year, while Tata Steel produces 5 million tonnes a year.
Meanwhile, the British Steel Workers Union sought safeguards on wages and pension for Corus employees. Tata Steel must provide "guarantees on the terms and conditions of employment for Corus' UK employees, particularly on pay and pensions," The Guardian newspaper quoted the union as saying.
A British lawmaker also wrote to British Prime Minister Tony Blair asking the government to initiate talks with Tata Steel to ensure that there were no lay-offs.
