Salzgitter Halts Takeover Discussions with Consortium
(Reuters) - German steel producer Salzgitter has ended talks with a bidding consortium on a possible takeover, it said on Friday, citing differing views on the company's current and future value.
The bidding consortium, comprising Salzgitter's second-largest shareholder GP Günter Papenburg and TSR Recycling, was considering a takeover of the German steelmaker and had offered around 18.50 euros ($20.87) per share.
Also in its statement on Friday, Salzgitter said it had increased a cost-cutting goal to 500 million euros, double a previous target of 250 million, and that it had achieved 130 million euros by the end of 2024.
For the future, it predicted demand for steel would increase.
"It can also be assumed that the incoming German government's planned economic policy measures in the areas of climate protection, infrastructure, and defence will have a positive impact in the coming years," it said.
($1 = 0.8834 euros)
(Reporting by Tristan Veyet in Gdansk; editing by Barbara Lewis)
