Private equity suitors are likely to offer €500m for the business, which is half of what Outokumpu expected to receive, said Reuters, citing three people familiar with the negotiations. The company has recently reduced VDM’s full year targets.
It is also less than the €600m to €700m that suitors were willing to offer in August, said the sources.
Private equity firms Goldberg, KPS Capital, Triton, Pamplona and Advent are expected to make bids for VDM by a Tuesday deadline, according to the report.
Stainless steelmaker Aperam has also expressed interest in acquiring VDM, but it is unclear whether it will make an offer, two people familiar with the company told Reuters.
VDM is part of steel company Inoxum, which Outokumpu bought from ThyssenKrupp last year.
Back in 2005 Outokumpu sold its copper manufacturing division to Nordic Capital.
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