Tatas make hostile bid for Brazilian ore miner AVG

Tatas make hostile bid for Brazilian ore miner AVG
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First Published: Fri, Apr 11 2008. 12 46 PM IST
Updated: Fri, Apr 11 2008. 12 46 PM IST
PTI
New Delhi: After the takeover of Corus, Tata Steel has made a hostile offer to acquire Brazilian iron ore miner AVG, which is owned by global mineral giant MMX.
The Steel Business Briefing (SBB) quoted MMX president Eike Batista as saying that the domestic steel giant has made the offer.
“Eike, however, did not reveal the value offered by Tata, but said a deal could be made if Tata guarantees it will build a carmaker on the outskirts of Acu Port, the complex MMX is building on the coast of Rio de Janeiro,” it quoted the daily as saying.
If this happens, MMX could sell as much as 50% in AVG to the domestic steel giant.
However, when contacted a Tata Steel spokesman could not confirm the same to PTI.
MMX bought AVG last year for $224 million. Its current capacity is around 2.3 million tonnes a year, but MMX has already announced plans to integrate this asset into its recently acquired Minerminal mineral company and expand the combined output to 6.1 million tonnes this year and upto 10 MT by 2010, it added.
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First Published: Fri, Apr 11 2008. 12 46 PM IST