Shares of ThyssenKrupp (ETR: TKA) soared nearly 25% on Friday after German media reported yesterday that the firm’s steel unit is likely to be a subject of a bid from Liberty Steel
Spiegel, a popular media outlet in Germany, reported on Thursday that the privately-held Liberty Steel is preparing to make a bid today for the embattled ThyssenKrupp’s steel business.
The German company posted a nearly 1 billion euros loss last year, which prompted the management to explore possibilities of tie-ups of its steel arm with India’s Tata Steel, Germany’s Salzgitter and Sweden’s SSAB, according to Reuters. A joint venture with Tata Steel agreed last year was rejected by the European Commission.
ThyssenKrupp is struggling to survive and seeking a buyer for its steel unit as it attempts to streamline its business. Earlier this year, ThyssenKrupp sold its elevator division.
The sale would mark an end to a historic steel production managed by ThyssenKrupp. The entire conglomerate was built around a steel business since the 19th Century.
ThyssenKrupp share price now trades 16.5% higher after surging as much as 25%. Shares of ThyssenKrupp trade 60% in the red YTD.
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