December 03, 2008

Outokumpu shares gain on ArcelorMittal Speculation

Bloomberg reported that Outokumpu Oyj rose in Helsinki trading last weekend on speculation ArcelorMittal wants to acquire the Finnish government's stake in the world's fourth biggest stainless steel maker.

According to the report, Outokumpu gained EUR 85 cents or 3.1% to EUR 28.67 in the Finnish capital, when excluding the EUR 1.2 dividend the steelmaker paid.

Mr Erkki Vesola an analyst at eQ Bank who has a reduce holding on the stock said that “The Finnish government may be considering selling its stake but I don't see the logic of a deal with ArcelorMittal as it would most likely be blocked by the authorities. I don't see anything solid behind this rumor.''

The country's parliament passed amendments allowing the government to sell more shares in state owned companies, broadcaster
Ms Paivi Lindqvist a spokeswoman of Outokumpu and Ms Nicola Davidson a London based spokeswoman for ArcelorMittal declined to comment.