Defence group Rheinmetall said on Thursday it was not in talks with Northrop Grumman, responding to market talk the US company may consider a bid for the German firm.
“There is no contact and there are no talks,” a Rheinmetall spokesman said.
Shares in Rheinmetall had climbed as much as 3.8 percent earlier after several traders mentioned a possible 82 euros per share bid by Northrop, but pared gains after Rheinmetall’s remarks, Reuters reports.
Rheinmetall shares were trading up 2.6 percent at 64.31 euros by 1243 GMT, while Frankfurt’s wider mid-cap index .MDAXI was down 0.4 percent. Frankfurt-listed shares in Northrop were 1.3 percent lower.
A Northrop Grumman spokesman said it was the company’s policy not to comment on market rumours.
After 90 minutes of trading after the open, the volume on Rheinmetall shares already represented 100 percent of the stock’s 90-day average.