March 28 (Bloomberg) -- Eregli Demir & Celik Fabrikalari TAS, 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 said.
Goldman Sachs Group Inc. was hired to manage the sale, ArcelorMittal said in an e-mailed statement yesterday.
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