Eregli Demir ve Celik Fabrikalari TAS slumped to the lowest level in almost a month after ArcelorMittal SA (MT), the world’s biggest steelmaker, sold about a third of its stake in the Turkish manufacturer of the metal.
The company known as Erdemir tumbled 3.7 percent to 2.35 liras at 2:55 p.m. in Istanbul, the weakest level since Sept. 13. More than 80 million securities traded, or triple the three-month average, according to data compiled by Bloomberg. The benchmark Borsa Istanbul National 100 (XU100) index fell 0.9 percent.
ArcelorMittal sold about 233 million Erdemir shares to institutional investors for $267 million, it said in a statement today. The sale, managed by Citigroup Global Markets Ltd, will cut its stake in Erdemir to about 12.08 percent from 18.74 percent, the Luxembourg-based company said, pledging to keep its remaining shares for at least 180 days.
“ArcelorMittal sees Erdemir as a non-core asset,” Alper Paksoy, an analyst at TEB Investment in Istanbul, a unit of BNP Paribas SA, said by phone. “The overhang on the shares might continue for a few weeks.”
The deal values Erdemir shares at 2.3 liras apiece, implying a 5.7 percent discount from yesterday’s closing price, according to Bloomberg calculations.
Erdemir has gained 8.2 percent in 2013, compared with a decline of 3.8 percent for the benchmark index. Twelve analysts, including Paksoy, recommend investors buy Erdemir, while 10 recommend holding the stock and one says sell, data compiled by Bloomberg show.
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