LONDON (Reuters) - Brazilian steelmaker CSN said on Monday it had agreed to buy Anglo-Dutch rival Corus for 4.9 billion pounds ($9.6 billion), trumping an offer from India's Tata Steel announced only hours before.
Companhia Siderurgica Nacional said it would pay 515 pence a share in cash for each Corus share, topping Tata Steel's offer of 500 pence a share.
Corus shares leapt more than 5 percent to a new high of 527 pence on hopes the bid battle would yield an even higher offer.
Tata Steel, which kick-started the battle with a 455-pence-a-share offer, said it was considering its position.
A takeover of Corus by either CSN or Tata Steel would create the world's fifth biggest steelmaker and would be the latest in the industry as companies look for global reach, economies of scale and to secure valuable raw material supplies.
Earlier this year Dutch-based Mittal Steel bought Luxembourg's Arcelor to create Mittal Arcelor, the world's biggest steelmaker.
By 0819 GMT, Corus shares were up 5 percent at 524-3/4 pence in heavy trading, the biggest rise on the UK's benchmark FTSE 100 index. Tata Steel shares were down 6.8 percent at 449.5 Indian rupees amid concerns it might overpay for Corus.