Tata Steel: Shortlist of bidders set to be revealed

Three suitors are thought to be in the running - management buyout team Excalibur, commodities trader Liberty House run by tycoon Sanjeev Gupta and Leeds-based private equity group Endless.

It is understood that professional advisory firm KPMG, which is handling the sales process, has been reviewing up to seven bids that were submitted by the deadline on May 23.

KPMG had been expected to announce a shortlist last week.

Reports also suggest that Tata is now considering keeping the rest of its British operations in light of the Government's support package.

But the future of Tata Steel UK is unlikely to be decided until after the EU referendum on June 23.

Greybull Capital yesterday completed its takeover of the Long Products business fromTata, securing thousands of jobs at a huge plant in Scunthorpe.

The Long Products business - which is being renamed British Steel - includes the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a rail mill in northern France.

The business employs 4,800 people - 4,400 in the UK and 400 in France.

Greybull is also said to be one of those that submitted bids for the remainder of Tata's UK business.

It is expected to have missed out on being shortlisted, alongside fellow bidders Indian steel producer JSW, Chinese steelmaking giant Hebei, and US billionaire investor and turnaround specialist Wilbur Ross.

KPMG was not immediately available for comment.