British government intensifies talks with Tata Steel in UK

The British government's Treasury asked investment banker Credit Suisse to advise Tata Steel, which owns the giant Port Talbot plant in South Wales.

The appointment of Credit Suisse, which bank sources say has agreed to operate on a volunteer basis, will put an end to speculation that talks between the government and an Indian-owned industrial group will end. Previously, Tata Steel demanded approximately 900 million pounds from the government in exchange for a stake in its British business of up to 50%. However, officials are believed to have rejected the offer on the grounds that the parent of the steel mill would have written off an equivalent amount of debt but would not have invested significant new equity capital.

Sky News also reported that ministers also hired McKinsey management consultants to plan the future of the UK's steel industry.