Corus will not make change-of-control offer for 3% convertibles

By Angela McDaniels

Seattle, Nov. 10 - Corus Group plc said it will not hold a change-of-control tender offer for its 3% convertible bonds and will make no change-of-control adjustment to the bond's conversion price because the bonds will mature on Jan. 11, five days before the company will be acquired by Tata Steel Ltd.

All notes that remain outstanding on Jan. 11 will be redeemed at €1,096.22 per €1,000 principal amount of bonds plus accrued interest.

Holders may convert their bonds until Dec. 28 and will receive 152.7 Corus shares at €6.77 each for a total of €1,033.10 per €1,000 principal amount of bonds instead of 152.7 shares at €6.55 each for a total €1,000 per €1,000 principal amount of bonds.

The bond's conversion price is €6.55, but Tata Steel UK Ltd. will purchase Corus' shares at a price of 455 pence per share, which is equivalent to €6.77 at the current exchange rate, and Corus said it will extend the €6.77 price to any shares issued upon conversion of the bonds before Jan. 14.

Corus is a London-based metals group that manufactures, processes, and distributes steel and aluminum products.

Tata Steel is a steel company based in Mumbai, India.

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