Outokumpu CEO denies Terni sale unexpected -report

HELSINKI Wed Oct 10, 2012 8:24am EDT

HELSINKI Oct 10 (Reuters) - Stainless steel maker Outokumpu was always ready to sell a mill in Italy as part of plans to buy ThyssenKrupp's Inoxum unit, its chief executive told news agency Startel on Wednesday, denying it was an unplanned move.

Outokumpu said on Tuesday that it was committed to sell the mill in Terni, Italy - considered one of the most advanced steel mills in Europe - to gain regulatory approval for the deal.

The European Commission had deemed Outokumpu's previous plan to sell Swedish operations as insufficient.

"We had naturally prepared ourselves for all the alternatives quite carefully," Chief Executive Mika Seitovirta was quoted as saying. "By no means we did miscalculate the terms of the deal."

Some investors, however, fear the Terni divestment was an unexpected move that may water down the deal's benefits.

The company's shares have been falling since the company announced its plan to sell it, and were down 3.4 percent on Wednesday, extending their 2 percent fall a day earlier. (Reporting By Jussi Rosendahl; Editing by Hans-Juergen Peters)

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