Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Erdemir Drops to Month Low as Arcelor Cuts Stake: Istanbul Mover

Oct. 8 (Bloomberg) -- Eregli Demir ve Celik Fabrikalari TAS slumped to the lowest level in almost a month after ArcelorMittal SA, 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 2.9 percent to 2.37 liras at the close in Istanbul, the weakest since Sept. 13. More than 105 million securities traded, or 4.2 times the three-month average, according to data compiled by Bloomberg. The benchmark Borsa Istanbul National 100 index fell 1.1 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.

Erdemir has gained 9.6 percent in 2013, compared with a decline of 4 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.

To contact the reporter on this story: Taylan Bilgic in Istanbul at tbilgic2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.