ThyssenKrupp AG (TKA) rose to a six-week high after the Brazilian daily O Estado de S. Paulo reported that Germany’s biggest steelmaker reached a deal to sell its steel plant CSA in the state of Rio de Janeiro.
ThyssenKrupp increased as much as 3.8 percent to 15.95 euros, the highest intraday price since June 5. The stock was trading up 3.6 percent at 12:37 a.m. in Frankfurt, valuing the Essen, Germany-based company at 8.19 billion euros ($10.7 billion). Volume was 72 percent of the three-month average.
Cia. Siderurgica Nacional SA (CSNA3), Brazil’s third-largest steelmaker, has emerged as the leading bidder for ThyssenKrupp’s Brazilian and U.S. steel-plant assets, people with knowledge of the talks said in May. ThyssenKrupp will maintain a small stake in CSA in a transaction that may be announced in the next few days, O Estado reported yesterday, without saying where it got the information. The German steelmaker said today that the status of the negotiations hasn’t changed.
“We are in advanced negotiations with a leading bidder on the disposal of Steel Americas,” the unit that’s being sold, Stefan Ettwig, a spokesman at ThyssenKrupp, said by phone.
ThyssenKrupp’s gain exceeded the 1.1 percent increase in the 18-stock Bloomberg Europe Iron/Steel Index.
“Other steelmakers were not rising today, so Thyssen might be gaining on the speculation of the plant sale,” Christian Obst, an analyst at Baader Bank in Unterschleissheim, Germany, said by phone. “Everyone is waiting for the news and we might hear something in next weeks.”
The German steelmaker said earlier this month that it will take weeks to achieve “stable operating conditions” at one of the two furnaces at the Steel Americas plant in Rio de Janeiro state, while ThyssenKrupp continues to pursue a prompt signing of a sale agreement for the division.
A disposal soon would be “surprising because of the technical problems with the furnace,” said Ingo-Martin Schachel, an analyst at Commerzbank AG in Frankfurt. “I would have expected a delay until August. If they can manage to do it in July, that would be positive.”
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