Commodities

German Steelmaker Salzgitter Jumps 33% on Planned Takeover Bid

  • Major shareholder working with recycling firm on potential bid
  • Consortium to pursue deal if it can get more than 45% of stock

A Salzgitter mill in Germany.

Photographer: Krisztian Bocsi/Bloomberg
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Beleaguered German steelmaker Salzgitter AG posted a record gain after a major shareholder said it’s planning a takeover offer.

Industrial conglomerate GP Günter Papenburg Aktiengesellschaft is working with TSR Recycling GmbH & Co. KG on plans to submit a takeover bid if it can acquire more than 45% of the company’s stock, Salzgitter said Monday in a statementBloomberg Terminal. GP Günter Papenburg AG had a 25% stake at the end of last year, according to data compiled by Bloomberg, making it the steelmaker’s second-largest investor.