Corus Group PLC said Thursday it wouldn't bid alone for Eregli Iron and Steel Works Co. (EREGL.IS), or Erdemir, as it reported a near tripling of first-half net profit.
Corus, the second biggest steel maker in Europe, said it would seek a partner for its bid in the Turkish company's forthcoming privatization.
"We have decided not to go on a standalone basis and, if we do something in Turkey, to do it with a Turkish partner," Corus Chief Executive Philippe Varin told journalists.
Varin declined to be drawn on which Turkish partner the group might opt for. A number of companies, both Turkish and international, have expressed an interest in Erdemir, including Mittal Steel, United States Steel Corp.; Arcelor; Novolipetsk Iron & Steel Corp.; Severstal JSC and Turkish companies Borusan (BRSAN.IS) and Kibar Holding.
One analyst said the move to include a Turkish partner made sense - for Corus to win that asset it would most likely have to pay more than Mittal, he said, so it is sensible to share the cost. Plus, having a Turkish partner might "give them an edge with the government." |