* Several options for divestment still on table - source
* Brazilian paper says CSN has been picked as buyer
* ThyssenKrupp shares up 3.7 percent
(Recasts, adds source, background shares)
FRANKFURT, July 16 The planned sale of
ThyssenKrupp's Brazilian steel mill is unlikely to
happen quickly, a source close to the transaction said after a
newspaper reported that a deal had been struck.
"The process has gained momentum of late, but it would be a
miracle if a decision could be reached within the next couple of
days," the source said on condition of anonymity because the
talks are confidential.
The German steelmaker has been trying to offload its
loss-making Steel Americas business, which comprises the
Brazilian CSA mill, and a plant in Alabama in the United States
as it shifts investment to higher-margin products and services
such as elevators, submarines and parts for manufacturing
"There are still several options on the table and we are not
at a stage where we would say we were pressing ahead with one of
the options," the source said.
Brazilian newspaper O Estado de Sao Paulo had said in an
article published on its website late on Monday that
ThyssenKrupp had agreed to sell a majority stake in CSA to
Companhia Siderurgica Nacional (CSN), giving no
details of its sources.
Under the agreement, CSN would control about two thirds of
CSA, with ThyssenKrupp retaining a small stake, the paper said.
It said the deal would be announced in the coming days, once
it has been approved by Brazilian miner Vale, which
owns 27 percent of CSA.
ThyssenKrupp declined to comment on details of the
negotiations and reiterated that it aimed to agree a deal
shortly. CSN was not immediately available for comment.
ThyssenKrupp has struggled to find a buyer willing to pay
its price for all or part of Steel Americas. The German company
has had to write down the value of the business to 3.4 billion
euros ($4.4 billion) over the past year, from more than 7
Steel Americas cost 12 billion euros to build but lost 1
billion euros in the 12 months to Sept.30 last year.
One of the options being discussed for the Brazilian part of
Steel Americas is a joint venture through which ThyssenKrupp,
CSN and Vale would each hold a third of CSA, sources familiar
with the deal have said.
Sources have said that negotiations have centred around the
valuation of the business and the question of who will have to
make necessary investments in Brazil of $700-800 million.
ThyssenKrupp shares rose 3.7 percent to 15.92 euros by 0925
GMT, making it the biggest gainer on Germany's blue-chip DAX
index, which was down 0.2 percent.
($1 = 0.7664 euros)
(Reporting by Arno Schuetze; Additional reporting by Maria
Sheahan and Filipa Cunha-Lima; Editing by David Goodman)