Again talking of asset sales and senior management changes.With this news hitting the media the price will explode.

Dongkuk Steel Bids for Stake in Corus's U.K. Steel Slab Plant
June 30 (Bloomberg) -- Dongkuk Steel Mill Co., South Korea's third-largest maker of the metal, is bidding for a stake in Corus Group Plc's Teesside steel plant in England to secure supplies of slab, the raw material used in steel plates.

Dongkuk submitted a non-binding letter of intent late last month to buy the mill in northern England, spokesman Kim Eung Sung said. Corus Chief Executive Philippe Varin last week said the company wants to sell as much as 80 percent of the mill and is in talks with potential buyers.

Dongkuk didn't give details on its bid for the plant, which employs 2,000 people and produces 3.4 million metric tons of steel slabs a year. The Seoul-based steelmaker is accelerating efforts to secure raw materials as rising demand from China boosts prices and delivery delays from long-term suppliers strain supplies.

``This is positive news because Dongkuk will be able to secure supplies at lower costs,'' said Park Chang Suk, an analyst at LG Investment Trust Management Co. in Seoul. Buying a stake in the Teesside mill would help Dongkuk Steel cut its raw material costs by as much as 7 percent a year, Park estimates.

Dongkuk has been buying about 2.6 million tons of steel slabs from Japan, Brazil and Australia each year, with 65 percent of imports based on long-term contracts. The company earlier this month agreed to buy 600,000 tons of slabs for at least a year from China's Jiangsu Shagang Group Co.

Rising Prices

Steel prices have risen partly because of higher demand in China, where the economy expanded 9.1 percent last year. Prices of slabs imported by China rose 34 percent to $445 a ton in the first four months of this year, according to Metal Bulletin's data.

Dongkuk raised prices of its steel plates used in ships and construction five times this year to pass on higher raw material costs. It raised prices of steel plates used in ships 70 percent to 715,000 won ($621) this year and the price of steel plates used in construction and machinery 66 percent to 715,000 won.

Sumitomo Metal Industries Ltd., Japan's third-largest steelmaker, on Monday denied a U.K. newspaper report that it offered to buy a majority stake in Corus's Teesside mill. The Observer reported that Sumitomo and Brazil's Cia. Siderurgica Nacional SA, Latin America's second-biggest steelmaker, are front- runners to buy a majority stake in the plant.



To contact the reporter on this story:
Meeyoung Song in Seoul at msong2@bloomberg.net.

To contact the editor responsible for this story:
Peter Langan at plangan@bloomberg.net.

Last Updated: June 30, 2004 03:47 EDT

Sumitomo's denial is BS and I dont mean British Steel. Their management team are very actively considering Teesside as an entry route into the market for slab in Europe. They are quite well advanced. The good news for CS is that a buyer seems very likely to break soon. If not Sumitomo then another non European with cash to expand.The upswing in slab prices will secure a better price and it leaves CS with just the aluminium business to divest. They will emerge somewhat smaller but still with scale as a profitable highly specialised steelmaker with a portfolio skewed to high margin, high demand and less price sensitive steels. Keep buying...I have a close knowledge of this strong new exec team and they are closing in on news that will see the market applaud very loudly.

Does somebody know a good discussion site about Corus?

don't you like our little thread then Skorpija - sob, sob....

Alu deal getting close according to my sources.

hee joehargan, i appreciate your postings off-course, but i would like to see other peoples opinions too.... (i myself am dutch and check out dutch forums, but i am more interested what is going on with you in UK!)

Thanks Skorpija - up 3 pence to 41.75 today. Happy days are here again. Announcement imminent and the traders have a scent of it I beleive. still value - hang on in there - we need to break 44 pence then 50p is available - a deal is on I hear. DYOR but be confident there's more upside here.

Market Report: Corus of approval puts steel maker in demand
By Michael Jivkov
16 July 2004


Corus has been busy doing the rounds of the City this week and word has it the various meetings the steel maker has had with brokers and institutional investors have been very bullish. As talk to this effect spread through the Square Mile yesterday, traders rushed to get their hands on the stock and managed to push it 3p better to 41.75p. Corus is enjoying something of a renaissance at present and according to those who have met the group this is set to continue.

Cazenove is believed to be among those who spoke to the group's management and quickly raised their forecasts considerably.
The heavyweight broker is said to have raised its earnings forecast on Corus for this year by as much as 23 per cent and urged its best clients to buy into the stock.
This is despite a jump of more than 30 per cent in the steel maker's share price since May. There was a similar move by UBS early this week as the Swiss broker highlighted Corus as a major beneficiary from the strength in global steel prices.

Nearly 100% up since we were in the doldrums at 26p in June and I still see a bit more value with a FTSE 100 re-entry imminent. Congratulations if you kept the faith and went long on this stock - a bumpy ride but worth it in the end. The day traders must have been cleaning up on this stock given some of the intraday volatility in June -August.

yep just come out @ 51p bought just over a year ago @ 18p.
very very nice - still have the rights bought @26p too.

shouldhave sold the lot going south now

Agreed - clearly it's now a sell - well done Transco, 51p was a great decision.

Thanks Joe - currently looking at morrisons - bit late I know &
ITV what about you?

Yeah well done transco. I remember I was in these @ 8.75. silly me sold out in early teens.

thanks azhar - If hadnt been on holiday I would have been very tempted
but I have missed out so many times by selling too early.

These could fall back to 46-47 from a charting point of view at which point I'd go seriously long. I'm still in. Can't continue to rise unabated, there'll always be dips and retracements. If you can get them right you'll make money, but I'd rather sit tight as they are still in an uptrend (imho!).

Corus Group plc 2004 Interim Results

Highlights

Substantial improvement in financial performance

Group operating profit improved by 204m to 147m, with the rate of
progress accelerating sharply in the second quarter.

Approximately 100m (c.50%) of the improvement was attributable to the
Group's 'Restoring Success' programme, which is progressing well and to
plan.

Competitive EBITDA margin gap estimated to have narrowed from 6% to
4.5%.

Balance sheet gearing at 43%. Bond launched to extend debt maturity
profile.

Two new board appointments.

might explain the fall:-

Anglo-Dutch steel maker Corus eased back by 0.5p to 49.5p after bear raider Evil Knievil revealed that he had dumped his entire stake at 49p on his legendary EvilCast. Evil bought in at 10p and has been a major bull but warned that he sees no bid coming from Russia and that UK overheads are still far too high

Evil almost always gets it correct.

96m just dumped @ 50p !!! 48,000,000 would that be that Ruski?