Tata Steel raises Corus bid to $ 9.2 billion, watches CSN's move

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The new offer, 500 pence per Corus share, is up 10 percent from a previous cash bid of 455 pence, Tata said.

It also trumps an indicative approach by CSN of 475 pence per share. CSN's bid was contingent on it securing financing, completing a due-diligence inspection of the British company and approval from the Corus board.

Corus chairman Jim Leng said the new terms were a "substantial increase" on Tata's previous offer, and Corus would be recommending the deal to shareholders.

A CSN spokesman declined to comment.

Corus, Europe's second-largest steel maker, has been a takeover target for months.

"We remain convinced of the compelling strategic rationale of this partnership and the revised terms deliver substantial additional value to Corus shareholders," Tata group chairman, Ratan Tata said.

As financing and the financial review have been largely completed, Tata's move is an attempt to preempt a formal counterbid by CSN, which was expected soon, according to sources close to the development. Tata's increased offer is unusual for the Indian company, which typically shuns bidding wars.

In October, Corus agreed to a takeover bid by Tata that had valued the company at $ 8.4 billion (£ 4.3 billion). A successful bid would have been India's largest-ever foreign takeover. CSN later said it had approached Corus over a possible higher bid.

Though CSN has completed due diligence on Corus Group, it is yet to reach agreement with the steelmaker's pension trustees. CSN has not made a formal counter-offer.

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