CVC discusses Austrian steel deal

CVC Capital Partners is in talks with the board of Austrian steel group Boehler Uddeholm about a friendly takeover deal, which could involve taking the listed company private.

CVC Capital Partners has confirmed it is negotiations with the board of Boehler Uddeholm, an Austrian steel group with a market capitalisation of €3.6 billion ($4.8 billion).

CVC was forced to confirm it was in negotiations with the Austrian group after a 30 percent jump in the company’s share price before the close of trading last Friday.

In a statement, CVC managing director Christian Wildmoser said that the group was interested in acquiring Boehler Uddeholm, and is currently investigating whether to make a takeover offer. However, the firm will only bid with the agreement of Boehler’s board.

According to media reports, CVC has been in talks to buy a 21 percent stake owned by a pool of local investors.

However, Wildmoser denied that CVC had bought any shares, either directly or indirectly, and said he was “astonished” by the jump in the share price, which had become “completely exaggerated”.