Potential takeover of Schnitzer by Sims makes sense, Deutsche Bank says

• Schnitzel Steel (SCHN +2.8%) is higher as Deutsche Bank says a potential takeover of the company by Sims Group could make sense.
• The firm says if Sims were to acquire SCHN in a cash bid at a 40% takeover premium, the deal could be accretive in the first year.
• Deutsche Bank does not see any significant hurdles around a deal given the Schnitzer family shareholding no longer exists and new Sims management could make a deal more likely.