SGL Carbon SE rose the most in 4 1/2 years after Manager Magazin reported the company was in talks about selling its graphite-electrode business to state-owned China National Chemical Corp.
SGL jumped as much as 14 percent, the steepest intraday gain since Oct. 17, 2011, and was trading up 12 percent at 11.795 euros as of 11:01 a.m. in Frankfurt. That pared the stock’s decline this year to 8.7 percent, valuing the Wiesbaden, Germany-based manufacturer at 1.09 billion euros ($1.22 billion).
The company, whose biggest investors include carmaker customers BMW AG and Volkswagen AG, decided last year to separate the division to focus on more profitable products such as carbon fiber for the automotive industry. SGL has provided information to possible buyers of the unit, Andreas Puetz, a spokesman for the Wiesbaden, Germany-based manufacturer, said Friday in a phone interview, reiterating company comments earlier this month. He declined to identify potential suitors.
ChemChina Chairman Ren Jianxin held talks on a potential deal with SGL Chief Executive Officer Juergen Koehler as well as with Susanne Klatten, the German company’s biggest shareholder and a member of the Quandt family that controls BMW, Manager Magazin said. Seedamm-Finanzberatungs GmbH, a holding company for Klatten, declined to comment. A ChemChina spokeswoman didn’t immediately answer mobile-phone calls or text messages seeking comment.