When Thyssenkrupp CEO Guido Kerkhoff announced plans to list its prized elevator...
FRANKFURT - When Thyssenkrupp CEO Guido Kerkhoff announced plans to list its prized elevators unit last week, he set off a battle for the conglomerate’s future that could test Germany’s brand of “social market” capitalism.
It’s also a clash of cultures and of differing visions of capitalism: Anglo-Saxon profit maximization pitted against Germany’s long-term focused social market economy model. Components Technology, which makes automotive parts, and Industrial Solutions, which makes chemical and cement plants, may be merged with sector peers in the medium to long-term, according to three financial sources familiar with the matter.
“This is the breakup of Thyssenkrupp,” said a senior banker who declined to be named due to the sensitivity of the matter. The 10 workers’ representatives can team up with the Alfried Krupp von Bohlen and Halbach Foundation, which holds a 21 percent stake, to veto major changes. “It will be a difficult path for the company and its employees. But we won’t abandon workers,” said Markus Grolms, vice chairman of Thyssenkrupp’s supervisory board and secretary at IG Metall, Germany’s biggest labor union.The conflict at Thyssenkrupp also illustrates the growing influence of activist shareholders on European household names, with demands to tackle underperformance and simplify structures.
In recent years, groups that have reshaped their portfolios through spin-offs and sales have outperformed peers in terms of share price development, Goldman Sachs said in a study last year, a trend which helped asset disposals in Europe reach their highest level since 2007. In 1947, the United States forced the breakup of German industrial monopolies so that they could not be used as instruments of power by political forces, as had happened with the steel industry under the Nazis.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Germany's Thyssenkrupp agrees restructuring approach with labor leadersManagement and labor leaders at Germany's Thyssenkrupp have agreed on a way...
Weiterlesen »
Germany's Thyssenkrupp to seek new steel partners, CEO tells paperThyssenkrupp will still seek partners for its steel operations after abandoning ...
Weiterlesen »
Thyssenkrupp shares rise on hopes of deal with Finland's KoneShares in Thyssenkrupp rose as much as 7.2% on Thursday after Reuters reported F...
Weiterlesen »
Thyssenkrupp shoved into a panicky Plan BThe German conglomerate is binning a split after weak operations hit its shares, Reuters reports. Spinning off its elevator business instead would help, especially if the EU blocks a merger of its steel arm. But Thyssenkrupp would still need to show it can cut bloated costs.
Weiterlesen »
Thyssenkrupp agrees restructuring approach with labor leadersManagement and labor leaders at Germany's Thyssenkrupp have agreed on a way...
Weiterlesen »
Thyssenkrupp rips up failed split plan, to list elevators in fresh revampThyssenkrupp said it would embark on a fresh restructuring and list elevators, i...
Weiterlesen »
Exclusive: Kone looks at options for potential Thyssenkrupp elevator deal - sourcesFinland's Kone is assessing the viability of a bid for Thyssenkrupp's ...
Weiterlesen »
Thyssenkrupp belatedly stumbles on best M&A optionThe 8 bln euro German conglomerate has two choices for its prized elevator unit: a quick IPO, which CEO Guido Kerkhoff prefers, or merger with Finnish peer Kone. The second would create more value, and be more likely to gain antitrust approval than its recent failed steel deal.
Weiterlesen »
Thyssenkrupp agrees restructuring approach with labour leadersManagement and labour leaders at Germany's Thyssenkrupp have agreed on a wa...
Weiterlesen »
Buttigieg calls out Democrats for playing 'identity politics'In a risky speech to the Human Rights Campaign, a major LGBT rights group, presidential candidate Pete Buttigieg warned of a “crisis of belonging in this country.”
Weiterlesen »