Tata Steel rocks on shipping foray

DALAL STREET SPIKES

Tata Steel rose 5.3 per cent to close at Rs 493 backed by robust volumes of 16.8 lakh shares on the announcement of its foray into shipping business by way of 50:50 joint venture with one of the largest shipping companies in the world "� Japan's Nippon Yasen Kabushiki Kaisha (NYK).

The company will benefit immensely due to savings in the cost of transportation of raw materials and finished steel. Recently the stock was in the dumps as analysts felt the acquisition of Corus at 450 pence per share will put a big debt burden on Tata Steel.

Also the counter bid of 475 pence per share by Brazil's CSN was another blow to the company. Corus has extended the shareholders' meeting to vote on Tata Steel's offer to December 20.