SGL Carbon share price dips following ChemChina approach reports rally
Tom Brown
30-May-2016
LONDON
(ICIS)–Shares in SGL Carbon dipped in afternoon trading on
Monday following a 27 May rally on the back
of reports that ChemChina has entered into talks with
the Germany-based carbon specialist with a view to
acquisition.
ChemChina chairman Ren Jianxin has held with SGL Group chief
Juergen Koehler and key shareholder Susanne Klatten,
according to German business title Manager
Magazin.
SGL is reportedly looking to spin off its carbon electrodes
business, which has significant exposure to the steel sector,
currently weakened by lower pricing, while ChemChina is
understood to be looking to acquire the whole of SGL but is
open to other options.
Shares in SGL Carbon SE rose on 27 May following news of the
talks, closing up over 29% compared to Friday’s opening
price, but investor exuberance tapered off on Monday, with
prices falling 15.69% as of 15:15 BST to €11.31 per
share.
ChemChina is also working on completing the $43bn acquisition
of Switzerland-based agrochemicals major Syngenta.
Syngenta had not responded to requests for comment at the
time of publication.
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