Organisation: Corus / Tata



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Last week's announcement that Tata would be acquiring Corus, formerly British Steel, prompted barely a reference to the waning of Britain's former industrial glory, although the Daily Mirror (18/10) could not resist pointing out that "the old British Steel empire could be swallowed in a £4billion Indian takeaway." But the likely job losses loomed large throughout reporting, despite Tata's assurance that jobs were safe in the short term. "Tata steel jobs?" (Daily Mirror, 21/10), "Unions look for comfort over jobs" (The Times, 21/10), "Job fears as Corus agrees £4.3bn bid" (www.icwales.co.uk, 21/10) ran the headlines, casting a pall over the deal to make Tata the world's fifth largest steel producer. .

Also sabotaging Tata's carefully scripted messages about its contribution to the Corus pension, and the merger's potential for growth was the emergence of a rival bidder for Corus, and the City's disappointment with the price. Analysts let it be known that they were "less than impressed" (Independent, 23/10) with the offer price, and their predictions of a "global bidding war" (www.scotsman.com, 23/10) appeared to come true as rival Brazilian steel group CSN stepped into the frame. Against that backdrop, Tata and Corus must be steeling themselves for some tough times and headlines ahead.