A 3d printer at the Desktop Metal headquarters in Burlington, MA.

Photographer: Lane Turner/The Boston Globe/Getty Images

Desktop Metal Inc., the U.S. maker of 3-D printing machines, recently approached rival

SLM Solutions Group AG about a potential takeover before putting the plans on ice, according to people familiar with the matter.

Desktop Metal signaled its interest in making an all-stock bid valuing the German company at around 600 million euros ($713 million), according to the people. The two firms held some informal talks about the potential offer of roughly 30 euros per share before Desktop Metal decided not to proceed, the people said, asking not to be identified because the information is private.

The decline in Desktop Metals share price over the past few days has made it harder to move ahead with a transaction, the people said. It wasnt immediately clear whether negotiations could resume in the future.

Shares of SLM rose as much as 21% on Tuesday, the biggest intra-day jump since October. The stock was up 12% to 17.10 euros at 9:59 a.m. in Frankfurt, giving the company a market value of 338 million euros.

A spokesperson for SLM declined to comment. A representative for Burlington, Massachusetts-based Desktop Metal didnt respond to a request for comment.

Billionaire Paul Singers

Elliott Management Corp. is the largest shareholder in SLM with a 28% stake, according to data compiled by Bloomberg. The activist investment firm

accumulated a

holding in SLM in 2016, when it was the target of a

failed takeover bid from

General Electric Co.

Desktop Metal went public in December through a merger with blank check company

Trine Acquisition Corp. It currently trades at about 36 times forecast 2021 revenue, while SLM is valued at 4.1 times forecast sales, according to data compiled by Bloomberg.

The powder bed fusion technology used by SLM is geared toward production of high-performance and high-value components. Its seen as complementary to Desktop Metals binder jet process, which is more suitable for making low-cost, high-volume metal parts.

SLM, based in the northern German city of Luebeck,

said in February that it expects to report its revenue rose 24% last year to 61 million euros. Its forecasting a loss before interest, taxes, depreciation and amortization of about 14.5 million euros to 15.5 million euros. SLM announced a new model in November, dubbed the NXG XII 600, which got a boost recently when the company

signed a memorandum of understanding for delivery of five machines.

(Updates SLM share price in fourth paragraph.)

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