U.S. News

Tata Likely to Buy Back Existing Corus Debt: FT


India's Tata Steel is likely to buy back existing Corus debt in the financing of its acquisition of the Anglo-Dutch steelmaker, the Financial Times said on Monday, citing people familiar with the matter.

The move could slash the value of derivatives contracts worth billions of dollars linked to debt previously issued by Corus, the newspaper reported.

This would cause losses for the investors holding these contracts, such as hedge funds, it said.

Tata's victory over Brazil's Companhia Siderurgica Nacional at the end of last month in a dramatic auction for Corus created the world's fifth-biggest steel maker.