February 19, 2018 / 7:33 AM / 4 months ago

BUZZ-India's Bhushan Steel rises by daily limit; Tata Steel front-runner for deal - report

** Bhushan Steel Ltd rises by circuit breaker limit of 19.9 pct to 53.9 rupees; posts its biggest intraday pct gain since Oct 23, 2017

** Bhushan Steel gets takeover offers from Tata Steel, JSW Living, and its employees bit.ly/2o9Hzvz

** Tata Steel Ltd emerged as front runner to buy debt-laden Bhushan Steel for 352 bln rupees ($5.48 bln) and 12.2 pct equity to lenders, the Economic Times reported on Saturday bit.ly/2sCWJyp

** Lenders set aside 280 bln rupees all-cash offer from JSW Steel Ltd, the report said

** Tata and Bhushan were not immediately available for comment

** Tata Steel fell as much as 6.9 pct to 642 rupees, in its biggest intraday pct drop since Nov 2016; JSW Steel dropped as much as 5.8 pct to 295 rupees

** Tata Steel is falling as its offer for Bhushan is at a premium, potentially hurting Tata’s profitability. The debt-to-EBITDA ratio will get distorted as its total debt is going to more than triple, while EBITDA will not even double, says an analyst with a domestic brokerage, who did not want to be identified

** Bhushan’s lenders now will have to take a haircut of as little as 30 pct as opposed to previously expected 50 pct - analyst ($1 = 64.2400 Indian rupees)

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