According to the Bloomberg, consortium which was previously reported to have offered around EUR 17.50 per share, this step created a flurry of activity in the markets. Following this development, Salzgitter shares increased by as much as 9.4% on Thursday, recording one of the biggest daily gains in recent years. However, it is known that the shares have lost 36% of their value in the last 12 months due to weak steel demand and financial difficulties, and the company's market value has declined by about EUR 1 billion.
Salzgitter's largest shareholder, the state of Lower Saxony, has stated that the proposed takeover terms do not offer an economic advantage to the sustainable development of the company, while state officials have stated that there are no plans to sell the shares and that preserving the company's independence is a priority. On the other hand, one of the bidders, GP Günter Papenburg AG, holds a 25% stake in Salzgitter. Papenburg, together with TSR Recycling, was previously reported to be targeting a share majority of more than 45%. Papenburg, which operates in the construction and recycling sectors, did not comment on the offer.
Statements from both sides indicate that the process is still at an early stage and that no final conclusion has been reached. The government reportedly sees no economic advantage for the sustainable development of Salzgitter and does not intend to sell its shares. Given all these factors, the future of the offer remains uncertain and markets are carefully awaiting the outcome of the process.
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