Two firms confirm bids to buy Tata Steel's UK assets

• Report by ITV News Correspondent Rupert Evelyn

When the sale of Tata Steel UK was announced, it was feared that thousands of people would lose their jobs.

But spirits are high at the plant in Port Talbot with employees feeling optimistic about the future of the company after two groups have bid for the business.

Management buyout team Excalibur have said that they will turn around the plant, aiming to be profitable within two years.

The second bidder, Liberty House Group, have outlined their 'greensteel' business model for the plant.

Liberty House has confirmed it has formally submitted a letter of intent containing its bid for the entire issued share capital of Tata Steel UK, and released a statement outlining its "sustainable" plans for the company.

The Excalibur Steel consortium has confirmed that they are hoping to secure a management buyout of Tata Steel's UK assets.

Earlier, Liberty House confirmed it will put in a bid to buy the assets.

The deadline for potential buyers to come forward is tonight.

Business Secretary Sajid Javid has postponed a key trade visit to Iran, according to a spokesman from the business department, to focus on the future of Britain's steel industry.

India's Tata group announced its plans in March that it would sell its entire UK steel operation - leaving the UK government in a battle to save an industry that has weak demand, soaring costs and hurt by cheap Chinese imports.

"Given the Business Secretary's focus on the steel industry, he has decided to postpone his trip to Iran," the spokesman said.

"He remains committed to exploring the opportunities for trade and investment with this emerging market and an alternative date will be arranged in due course," he added.

Liberty House has confirmed it will put in a formal bid to buy Tata Steel's UK assets.

The commodities trading firm was the first to express an interest after the Indian conglomerate announced the decision to dispose of its loss making UK business, including the country's biggest steel plant at Port Talbot in south Wales.

A spokesman said Liberty said: "We can confirm that Liberty will submit a letter of intent to Tata Steel today and has put in place a strong internal transaction steering committee and panel of leading external advisers to take the bid forward."

A further statement is expected later today.

A management buyout team is also planning to submit a bid under the name Excalibur Steel UK Limited.

The Government has pledged to support any buyer of the business by buying up to a quarter stake and making hundreds of millions of pounds of finance available.