Erdemir Slimps as Mittal Sells Stake: Istanbul Mover

Eregli Demir & Celik Fabrikalari TAS (EREGL), Turkey’s largest steelmaker, dropped the most in more than three years after ArcelorMittal, the world’s biggest steelmaker, sold part of its stake.

Erdemir, as the company is also known, plunged 11 percent to 3.58 liras in Istanbul after ArcelorMittal said it reduced its ownership in Erdemir to 18.7 percent from 25 percent. The loss was the biggest since November 2008.

ArcelorMittal sold 134.3 million Erdemir shares and an equal number of warrants for 478.2 million liras ($268 million), it said in a statement today. The transaction valued Erdemir’s shares at 3.56 liras a piece, according to data compiled by Bloomberg.

ArcelorMittal’s stake will decline to 12.5 percent should all warrants related to the sale be exercised, ArcelorMittal (MT) said.

Goldman Sachs Group Inc. was hired to manage the sale, ArcelorMittal said in an e-mailed statement yesterday.

To contact the reporter on this story: Mark Bentley in Istanbul at mbentley3@bloomberg.net

To contact the editor responsible for this story: Riad Hamade at rhamade@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.