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Aurubis shares fall as Salzgitter's share shrinks in bond deal

Aurubis shares fall as Salzgitter's share shrinks in bond deal

The shares of German copper producer Aurubis dropped on Wednesday, after Salzgitter, the company's largest shareholder sold bonds worth 500 million euros ($582 millions) that could be exchanged for 7.6% Aurubis stock.

Aurubis shares, which had been boosted by the booming copper market, dropped 6.7% at 0752 GMT to 108.2 Euros, erasing gains made earlier in the month.

This move quenched simmering speculation about a takeover. Salzgitter held 29.99% in Aurubis, and a stake greater than 30% would have required a mandatory offer for remaining shareholders.

The bonds are due in 2032 and offer a fixed interest rate of 3,375%. They can be exchanged for Aurubis shares, at a price of 145.80 euro, initially.

BNP Paribas acted as global coordinators, Commerzbank acted in the capacity of bookrunners, and UniCredit was the joint global coordinator. The transaction aims to diversify Salzgitter’s maturity profile and financing structure.

Salzgitter's shares rose 0.5% and the company plans to list its bonds on the Frankfurt Stock Exchange Open Market segment.

(source: Reuters)