Outokumpu shares jump on asset sales, rights issue

HELSINKI Mon Dec 2, 2013 3:10am EST

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HELSINKI Dec 2 (Reuters) - Shares in Outokumpu, the world's No. 1 stainless steel maker, opened 32 percent higher on Monday following the Finnish firm's unexpected announcement of a rights issue and asset divestments.

Outokumpu, which has been hit hard by Europe's economic slowdown and by overcapacity in the industry, on Saturday said it would divest some assets to ThyssenKrupp in exchange for cancelling a 1.25 billion euro ($1.7 billion) loan note.

It also announced plans to raise 650 million euros through a rights issue.

The shares were trading 31 percent higher at 49 euro cents by 0806 GMT.

($1 = 0.7345 euros) (Reporting by Jussi Rosendahl; Editing by Mark Potter)

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