Corus receives proposal for mothballed Teesside plant
Corus, the steel giant with operations around the world, has confirmed receipt of a potential offer for its mothballed Teesside plant which has been at the centre of much controversy over the last few months. It is believed that a consortium has offered to acquire the subsidiary although there are potentially controversial conditions attached to the offer. So what exactly is going on?
A consortium of investors, being advised by Hatch Corporate Finance, is looking at a potential offer although it has requested flexibility on fixed costs such as wages which would be linked to the price of steel. The new investors will also look to suppliers and potential customers to be part of the consortium as a means of keeping costs as low as possible and obtaining the best price for steel produced by the plant.
The Community Union, which represents Corus workers, has refused to give a detailed response to the proposals until further details are made available. Whether or not an offer is made remains to be seen but if the union accept a flexible wage structure, linked to the price of steel, it is likely that other businesses would also look to push through similar deals. A potential offer, and acceptance of a potential offer, is by no means guaranteed and as more information reaches the public domain about the conditions attached, the more concerned many experts are becoming.
Share this..
Related stories
Barclays looking to pick up Lehman Brothers family jewels
Despite receiving a substantial amount of criticism for its ill fated bid to takeover the whole of Lehman Brothers before it finally fell, the management at Barclays Bank seem intent on grabbing a slice of Lehman Brothers come what may. Despite a lack of cash on the balance sheet and the unlikely chance of being able to raise funds from shareholders or the money markets it seems that the group is...
Read MoreSFO looking for talks with BAE Systems
The Serious Fraud Office has this evening offered to talk with BAE Systems regarding bribery allegations in a last ditch attempt to avoid what could be a very embarrassing court case for all players involved. As we mentioned last become, BAE Systems is being taken to court by the Serious Fraud Office (SFO) years after allegations of bribery and corruption materialised in the Middle East.
Alistair Darling and HBOS unions curtail rival offers
On the eve of what will be the most important vote in the history of HBOS we have today seen Alistair Darling and the HBOS union step forward to scupper any rival offer for the group. Alistair Darling has suggested that in the event of a change of offer for HBOS, any new management team would need to renegotiate the rescue terms with the government and the government would look to tighten the term...
Read MoreGoldman Sachs fined £17.5 million by FSA
As expected, the Financial Services Authority (FSA) has today revealed a £17.5 million fine for Goldman Sachs in relation to an investigation by the US authorities regarding the company's mortgage-backed securities. It is the initial investigation by the US authorities which caught the eye of the FSA because the company was allegedly warned up to 18 months prior to informing the FSA that it was b...
Read MoreCan Woolworths be saved?
As the demise of UK retail stalwart Woolworths continues to dominate the financial press headlines, there are suggestions that the rescue bids are already in the offing and could materialise at any time. There is even a suggestion that one of the stars of "The Dragon's Den" may well be ready to step forward with an offer for the group.
If a potential buyer was able to negotiate a pr...