TKMS rules out German Naval Yards bid battle as defence consolidates

"We are not prepared to pay any price in the world," TKMS CEO Oliver Burkhard said, dampening market expectations of a competitive bidding process for GNYK, which is part of France's family-owned CMN Naval group. TKMS shares were trading 5.7 per cent lower at 13:20 GMT, along with a broader decline in European defence stocks.

Burkhard said there was a limit to what TKMS could offer, without naming the price tag, adding that while Rheinmetall was stronger financially TKMS scored higher in terms of experience and cooperation. Rheinmetall, which previously also bid for TKMS before it was spun off from parent Thyssenkrupp, declined to comment.

The group said last week it had submitted a bid for GNYK and already started due diligence. TKMS has been riding a wider boom in defence stocks since listing in October, a trend that has recently subsided as investors reassess valuations and the future of warfare, with the Iran war highlighting the effectiveness of low-cost drones.

(Reporting by Christoph Steitz and Matthias Inverardi; Editing by Ludwig Burger, Emelia Sithole-Matarise and Alexander Smith)