International Herald Tribune
ThyssenKrupp, the biggest German steel maker, said Tuesday that it might use a €700 million share buyback in what it described as a possible “major” takeover.
ThyssenKrupp’s move comes just days after Mittal Steel agreed to buy Arcelor for €26.9 billion, raising expectations of more takeovers in the industry.
I am sure that part of the reason they increased their shareholding was to make them a less vulnerable to takeover themselves. Other steel companies including SAIL, Nippon etc, are considering this move.
I think we will see more activity with regard to takeovers and mergers soon though. Expect Severstal to be on the aqquisition route soon.