FerroChina

FRC has been sold down after releasing strong Q1 result. Why like that?


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SINGAPORE, May 2 (Reuters) - Steel-maker FerroChina
rose as much as 4.9 percent after Hong Kong's South China Morning
Post reported that Australia and Russian firms are eyeing at
least a 20 percent stake in the China-based company.
Shares of FerroChina, which makes galvanised steel, hit an
intraday high of S$1.49 with over 4.8 million traded.
The newspaper report, which did not name its source, said
FerroChina has attracted interest from Australia's BlueScope
Steel and Russian firms including Evraz Group ,
part-owned by Russian billionaire Roman Abramovich, to buy a 20
percent stake in the Chinese company.
But the unnamed source said FerroChina may receive a large
offer and sell more than one-fifth of the firm.
"Some of the real acquisitive guys may come in with a huge
bid and the whole company could get sold," the newspaper quoted
the unnamed source as saying.
The report follows an announcement from FerroChina last month
that it had hired Merrill Lynch as its strategic advisor.
In March, FerroChina executive director Nelson Fong told
Reuters that the company would consider long-term alliances or
strategic investments by outside parties, but he said the owners
would want to retain some control.