What happened? An article from manager magazin states that Gunter Papenburg, who held almost 30% of Salzgitter, is looking to reduce its stake. The article without mentioning sources goes on as to imply that the divestment could eventually lead to revived merger talks with Thyssenkrupp. Shares have dropped more than 8% as a result. BNPP Exane View: Papenburg was unable to acquire Salzgitter earlier this year, which raises legitimate questions about the relevance of its remaining 30% stake, reported most recently to have fallen below 25%. Even if we recognize that this was not on our radar, the article is unclear. And it is not confirmed whether the company intends to divest the entire position. Though a full exit would eventually increase the free float of Salzgitter shares. Concerning the possible renewal of talks with Thyssenkrupp, the steelmaker is currently engaged in negotiations with Jindal. Given this focus and the expectation of a markedly stronger outlook for Europe next year, a merger does not appear to be back on the agenda in our view. We would buy on weakness. Reiterate Outperform.