* Talks with CSN, Arcelor/Nippon continue - sources
* End-September deadline for sale increasingly unlikely -
* Shares down 3 percent in early trading
FRANKFURT, July 26 German steelmaker
ThyssenKrupp is continuing talks on selling its Steel
Americas division to Brazil's Companhia Siderurgica Nacional
(CSN) but meeting an initial end-September deadline
is becoming increasingly unlikely, two sources familiar with the
situation said on Friday.
"We are not looking at getting it done by hook or by crook
by late September but trying to get the right outcome," one
Shares in ThyssenKrupp were down 3 percent at 16.82 euros by
0920 GMT, making them the top faller in the main German market
index, after a media report said that the talks had
The German steelmaker wants to sell 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 plants.
One option still under discussion, according to the sources,
is that ThyssenKrupp would lower its stake in Brazilian
semi-finished slab mill CSA to 33 percent, while CSN would
acquire an interest of 33 percent or more. Brazilian iron ore
miner Vale would at least retain its current 27
Separately, Thyssen is still in talks with CSN as well as a
partnership of ArcelorMittal and Nippon Steel
over a sale of its U.S.-based mill, the sources added.
Earlier the Wall Street Journal said on its website that
talks with CSN were on the brink of failure as ThyssenKrupp had
asked CSN to raise its $1.5 billion bid for the Alabama plant
after ArcelorMittal and Nippon Steel had offered $2 billion.
If CSN doesn't get the Alabama plant it could jeopardise an
agreement in principle reached earlier this month regarding the
Brazilian semi-finished slab mill CSA, the Journal reported.
ThyssenKrupp has struggled to find a buyer willing to pay
its price for all or part of Steel Americas and has had to write
down the value of the business to 3.4 billion euros over the
past year, from more than 7 billion euros.
A spokesman for ThyssenKrupp, which invested 12 billion
euros ($15.88 billion) to build the two steel plants, said the
company was still in intensive talks over the disposals with a
leading bidder and aimed to reach a deal promptly.