Sanjeev Gupta to bid today for Tata Steel's UK business

Sanjeev Gupta , executive chairman of the Liberty House Group , is expected to place a bid today for Tata Steel's business in UK . Liberty House Group , an international business group  specialises in metal trading as well as manufacturing & distribution of steel and advanced engineering products. 

Investors will be keenly tracking the bid offer to be made by Mr. Sanjeev Gupta as the details will bring in expected volatility in the share price of Tata Steel. Interestingly Sanjeev Gupta is being advised by a former Tata Steel senior executive Jon Boltan. Jon Boltan used to head Tata Steel's Long Products business in Europe, and now is working on board with Liberty House Group, looking after the steel business in Scotland , recently bought from Tata Steel.

Liberty house has completed the acquisition of Tata's steel plants in Scotland, last week. Macquarie Capital has been roped in by Liberty house for funding requirement along with State Bank of India. Deloitte and Grant Thornton are the advisers for the deal. It will be interesting to see Liberty House's bid proposal with comments on Tata's pensions scheme, with a tag of  500 million pounds. 

Albion Steel , is the other bidder for the Tata's speciality steels unit  based in Sheffield , in the northern territory of England.  There are reports pertaining to the possibility of a complete management team buyout of Tata Steel's UK business  as well. 

Tata Steel has been able to sell its Long Products business and its business in Scotland. Management at Tata Steel had made its intentions clear of exiting completely from its businesses in UK , which were making huge losses for the company.  Tata steel is up by 1.43 percent on an intra day basis on Tuesday quoting at 355. The stock is down by 1.74 percent on a 1 year basis. The stock however has been outperforming markets for last 6 months by gaining almost 50 percent. A successful exit from its UK business will augur well for the stock.