An attempt by Brazilian steelmaker CSN to buy Anglo-Dutch group Corus could be blown off course by a legal row in Brazil, a business daily has reported.

The dispute -- which is centred over CSN's rights to an iron-ore supply that would be crucial to a merged business -- could boost rival bidder Tata Steel of India, according to the Financial Times on Thursday.

The FT reported that the dispute emerged after Brazillian mining giant CVRD said it would challenge CSN's ability to supply iron ore to Corus, should the bid succeed.

Britain's Takeover Panel last week handed Tata Steel and CSN a deadline of January 30 to announce revised takeover offers for Corus.

Corus has recommended the CSN bid which valued the group at about 5.8 billion pounds. Tata's offer, meanwhile, stands at around 5.6 billion pounds.

Both bids include debt worth about 900 million pounds.

CSN and Tata, steelmakers from two of the world's emerging economic superpowers -- Brazil and India -- are battling for Corus as they seek to gain ground on world number-one steelmaker Arcelor Mittal.

Provided by AFP.