Wires

Outokumpu CEO denies Terni sale unexpected -report

HELSINKI, Oct 10 (Reuters) - Stainless steel maker Outokumpu

was always ready to sell a mill in Italy as part ofplans to buy ThyssenKrupp's Inoxum unit, its chiefexecutive told news agency Startel on Wednesday, denying it wasan unplanned move.

Outokumpu said on Tuesday that it was committed to sell themill in Terni, Italy - considered one of the most advanced steelmills in Europe - to gain regulatory approval for the deal.

The European Commission had deemed Outokumpu's previous planto sell Swedish operations as insufficient.

"We had naturally prepared ourselves for all thealternatives quite carefully," Chief Executive Mika Seitovirtawas quoted as saying. "By no means we did miscalculate the termsof the deal."

Some investors, however, fear the Terni divestment was anunexpected move that may water down the deal'sbenefits.

The company's shares have been falling since the companyannounced its plan to sell it, and were down 3.4 percent onWednesday, extending their 2 percent fall a day earlier.

(Reporting By Jussi Rosendahl; Editing by Hans-Juergen Peters)

((jussi.rosendahl@thomsonreuters.com)(+358 9 6805 0248)(ReutersMessaging: jussi.rosendahl.thomsonreuters.com@reuters.net))

Keywords: OUTOKUMPU/