New blow for steel giant

Beleaguered UK steel giant Corus suffered a fresh blow today after plans to raise more than £500m (€740m) from the sale of two businesses collapsed.

The Anglo-Dutch group had hoped to boost its balance sheet through the deal but instead saw the move blocked by its supervisory board in the Netherlands.

A last-ditch attempt to persuade an Amsterdam court to lift the veto failed today and left Corus forced to accept the sale was off.

The collapse increases the uncertainty surrounding the company after it said earlier this week it would have to consolidate on to fewer sites in the UK.

It also warned on Tuesday that failure to proceed with the sale would leave it needing to look afresh for finance from equity and debt providers.

Shares fell by a third to 4.07p today – off its peak of 174p in 2000.