Salzgitter eyes extra shares in French firm

5th April 2005, Comments 0 comments

FRANKFURT, April 5 (AFP) - Salzgitter, Germany's second-biggest steel maker, does not rule out raising its stake in French steel tube specialist Vallourec to a controlling majority, Salzgitter's chairman Wolfgang Leese said in a newspaper interview published Tuesday.

FRANKFURT, April 5 (AFP) - Salzgitter, Germany's second-biggest steel maker, does not rule out raising its stake in French steel tube specialist Vallourec to a controlling majority, Salzgitter's chairman Wolfgang Leese said in a newspaper interview published Tuesday.

"We have a very good partnership with Vallourec in which we hold a voting stake of more than 33 percent. A purchase would be tempting. But with the share price at more than EUR 160 (USD 221), it wouldn't make economic sense," Leese told the regional daily Westdeutsche Allgemeine Zeitung.

Salzgitter would start to think about a move at a price of "EUR 60-80 per share," Leese said.

Vallourec shares closed at EUR 169 in Paris on Monday.

"But it wouldn't simply be enough to raise our stake to 51 percent. Under stock exchange rules, we would have to make a full takeover offer for 100 percent," the Salzgitter chief said.

At the same time, Leese ruled out a tie-up between Salzgitter and Germany's biggest steel maker ThyssenKrupp.

"I can't really imagine it. The dimensions wouldn't fit," he said.

© AFP

Subject: French News

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