Thyssenkrupp shares gain over steel business talksThyssenkrupp shares gain over steel business talks
FILE PHOTO: The logo of German steelmaker ThyssenKrupp AG is seen on an escalator at Frankfurt’s main railways station in Frankfurt

BERLIN (Reuters) – Shares in German engineering and defence group Thyssenkrupp <TKAG.DE> soared on Monday morning after a source said the company is in talks with international peers about consolidating its loss-making steel business.

The talks, to be unveiled as part of a strategy revamp on Monday that is likely to include shutting or selling assets, follow a 372 million euro($403 million) loss Thyssenkrupp Steel Europe posted in the first half of the group’s fiscal year.

Thyssenkrupp shares were up 6.3% at 0711 GMT, making it the biggest percentage gainer in the German mid-cap index MDAX <.MDAX>.

Its shares have lost more than 60% this year, while the MDAX shed just about 17% of its value.

(Reporting by Thomas Seythal, editing by Louise Heavens)