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Standard Life to make GBP100 million from steel

UK insurance and protections provider Standard Life is poised to reap GBP100 million from the buyout of British steel maker Corus, the Daily Telegraph has reported.

The substantial windfall will come as a result of the GBP4.3 billion takeover of the UK firm by Indian outfit Tata Steel and the fact that the financial services company holds a significant portion of Corus shares as an investment interest.

The Tata buyout offer equates to 455p per Corus share, which is believed to represent a 155p premium on the price Standard Life paid for its shares in the steel maker. Standard life originally made its investment through its fund management arm, purchasing 7.9% of Corus for an average price of 300p, the Daily Telegraph states.

However, despite being poised to make GBP100 million on the merger deal, Standard Life is apparently unhappy that the Corus board did not hold out for a higher price.