British Steel fund gets sweeter offer

UK - The pension fund of steelmaker Corus is to get more cash under a new offer for the company from Brazil's CSN.

CSN, Companhia Siderurgica Nacional, today trumped an earlier bid by India's Tata by offering £4.9bn - with more cash on the table for the Corus Engineering Steels Pension Scheme.

CSN said it would fund upfront the IAS19 deficit on the scheme with an injection of £138m.

Tata had earlier said it planned to put £126m into the scheme.

CSN said today it has "held constructive and satisfactory discussions with the trustees of Corus' two main UK pension schemes and has agreed with committees of the relevant boards of pension trustees an arrangement, which will be recommended to the full boards of the pensions trustees".

Both CSN and Tata say they plan to increase the contribution rate on the British Steel Pension Scheme from 10% to 12% until 31 March 2009.

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