Selling metal companies was the fundamental trade for last couple of years. Nobody was sparred. Steel glut was/is obvious - thanks to China - and one doesn't need to be a consummate financial analyst in order to figure out the impact on big steel producers. It was boom which drove the industry into big mergers and acquisitions. Somehow it is always the case so far that big mergers and acquisition at eye popping premium happens when the valuations are ridiculous. Those were the days when company can't think of anything but going big. You can look at the Glencore , Xstrata and Noble group for more color on the subject. Besides these are not software companies where just putting a cloud in the name and showing big dreams will sell to the shareholders. And it is difficult to turn around such companies unless there is demand. Besides these cycles are very long term in nature. Now especially for Tata Steel, getting the kick even after it is down by Brexit is very unfortunate.
For Tata Steel fundamental case was so strong, you just have to pick up the level and short it until recently. Favorable UK until sell talks were helping and stock was recovering a bit ( along with general respite for metal stocks and metal market ) / or just a technical bounce from long term base near 200 as you can see in the chart. Now everything hinges upon how it responds to 260 level. For short term traders it is a good level to look for a bounce or two but it is advisable no to put too much risk into the trade. Because if things can't turn around quickly this time, market may not be friendly to Tata Steel and it might have a look at life below 200.