|Bid||13.15 x 142800|
|Ask||13.15 x 10700|
|Day's Range||12.42 - 13.32|
|52 Week Range||9.25 - 20.49|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov. 21, 2019|
|Forward Dividend & Yield||0.15 (1.19%)|
|1y Target Est||22.24|
(Bloomberg) -- The battle for Thyssenkrupp AG’s elevator unit is heating up as rival bidders Kone Oyj and Blackstone Group Inc. position themselves with potential partners for a deal that could fetch more than 15 billion euros ($16.5 billion), people familiar with the matter said.Kone, the Finnish elevator maker, is in talks with CVC Capital Partners about teaming up in an offer for the business, according to the people. Blackstone and Carlyle Group LP have partnered for their own planned joint bid, the people said, asking not to be identified because the information is private.Shares of Thyssenkrupp jumped as much as 5% in Frankfurt trading Wednesday. Suitors are still waiting for Thyssenkrupp to make the unit’s detailed financial information available before making bids in the coming weeks, the people said.A partnership between Kone and CVC would be a way to address significant antitrust concerns, with CVC acquiring elevator assets in places such as Europe where Thyssenkrupp and its Finnish rival have significant overlap, they said. The talks with CVC are one of several partnership options that Kone is exploring, according to the people.Antitrust ReviewCVC is also discussing whether it could bid independently in addition to pursuing a joint offer with Kone, two of the people said. No final decisions have been made, and there’s no certainty the suitors will proceed with formal bids, the people said.Representatives for Carlyle, CVC and Kone declined to comment. Representatives for Blackstone and Thyssenkrupp weren’t immediately available to comment.Kone and Blackstone will still face stiff competition from other suitors. Brookfield Asset Management Inc. and a consortium of Advent International, Cinven and the Abu Dhabi Investment Authority remain in the running, according to the people. The other strategic bidder is Japan’s Hitachi Ltd., the people said.Clayton Dubilier & Rice, EQT AB, Permira and KKR & Co. have dropped out of the process, the people said. Representatives for Advent, Brookfield, Cinven, KKR and Permira declined to comment, while a representative for Hitachi said “no formal decision has been made in this regard.” CD&R and EQT didn’t immediately respond to requests for comment. Replacing LeaderThyssenkrupp last month named Martina Merz as interim chief executive officer to replace Guido Kerkhoff as it tries to ink a deal for elevators, its most valuable asset, to fund a turnaround. The beleaguered German conglomerate plans to raise much-needed cash from the sale and also restructure or dispose of other units, such as automotive components and heavy plate steel.The departure of Kerkhoff, who preferred selling only a minority stake in the company’s crown jewel, has fueled speculation that Thyssenkrupp might now be more open to selling the entire business. An initial public offering is also still being prepared.Kone, whose CEO Henrik Ehrnrooth has said “the complementary fit of these two companies is just second to none,” is looking for creative ways to address competition concerns. Thyssenkrupp wants to avoid a long antitrust review and a repeat from earlier this year when European regulators derailed a planned steel venture with Tata Steel Ltd. Buyout firms would avoid antitrust hurdles, but Kone would potentially be able to make a higher offer and generate more cost savings, the people said.Buyout firms have been competing fiercely to buy assets being sold by European companies. Earlier this month, a consortium led by EQT completed the acquisition of Nestle SA’s $10 billion skincare division. A slew of private equity firms were also pursuing Bayer AG’s veterinary medicine unit before the German company decided to sell it to Elanco Animal Health Inc.CVC would be taking a page out of its previous playbook if it teams up with Kone to secure some of the assets. Linde AG and Praxair Inc. won a long U.S. antitrust battle for their $46 billion industrials gases merger last year only after selling significant assets to CVC and its partner Messer Group GmbH.(Updates with other European private equity deals in penultimate paragraph.)\--With assistance from William Wilkes, Kati Pohjanpalo and Eyk Henning.To contact the reporters on this story: Aaron Kirchfeld in London at firstname.lastname@example.org;Sarah Syed in London at email@example.com;Dinesh Nair in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Scent at email@example.com, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Thyssenkrupp is slashing some administrative jobs to cut down on the more than 2 billion euros (1.8 billion pounds) of costs it incurs in that field each year, two people familiar with the matter told Reuters on Monday. A majority of the 300 administrative roles at Thyssenkrupp's car parts and plant engineering divisions will be cut, the sources said. Thyssenkrupp declined to comment.
Thyssenkrupp's new chief executive Martina Merz will brief top managers about the steel-to-submarines conglomerate's organisational structure on Tuesday, three sources familiar with the matter told Reuters. The German group announced in May it was open to new ownership structures for its car parts, plant engineering, marine systems and elevators units, but investors criticised a lack of progress leading to the dismissal of CEO Guido Kerkhoff. Merz will address managers as the company reviews takeover offers for its elevators division and as investors question the viability of its steel and materials trading divisions in the long run.
Swedish fund Cevian, which holds an 18% stake in Thyssenkrupp , has never demanded a special dividend from the ailing conglomerate, a spokesman told Reuters, squashing speculation about such a move. The spokesman said that Cevian, Thyssenkrupp's second-largest shareholder, had previously participated in two capital increases and voted against proposals to pay a dividend in 2017 to improve the group's balance sheet. Cevian, which first disclosed a stake in Thyssenkrupp six years ago, has long criticised the group's complex structure, which spans capital goods ranging from elevators to submarines, arguing that individual units could thrive better on their own.
(Bloomberg Opinion) -- In the darkest days of the 2009 recession, Germany’s industrial output was collapsing at an annual rate of more than 20%. An unfathomable implosion but one that thankfully ended almost as quickly as it started.Some 10 years on, a crisis is brewing once again in the country’s industrial heartlands. The pain could prove more enduring this time.So far the problems aren’t nearly as acute as in 2009; industrial production fell by a comparatively modest 4.2% in July. The worry, though, is that demand is being sapped by a mix of both cyclical and longer-lasting structural factors such as the demise of diesel and the shift to electrical vehicles. Trump’s trade wars and Brexit aren’t helping. Germany’s industrial sector contributes more than one-fifth of GDP and is usually a huge asset. Right now this export engine is pulling the economy down. Signs of distress are everywhere. German manufacturing activity is at a decade low, according to IHS Markit’s purchasing manager’s index. The Ifo Institute estimates that more than 5% of manufacturing companies have cut working hours and about 12% expect to do so during the next three months. German machinery orders declined 9% in the first six months of the year, according to the VDMA association, which represents the country’s engineers. In chemicals and pharmaceuticals, domestic production fell 6.5% in the first half of the year, while domestic car output has fallen 12% this year. Auto exports have dropped 14%. ThyssenKrupp AG, a former industrial jewel that makes everything from steel to submarines to car parts, is in crisis. It’s burning cash, weighed down by debt and has parted company with two chief executives in the space of 14 months. The chemicals giant BASF is cutting 6,000 jobs and has warned on profits.Meanwhile, the German carmakers BMW AG and Daimler AG have issued profit warnings as tighter emission rules oblige them to keep spending heavily. Their suppliers are the ones really hurting though. At least three — Eisenmann, Weber Automotive and a subsidiary of Avir Guss — have filed for insolvency in recent weeks and investors are betting the pain will spread more widely.The list of manufacturing heartache goes on. Debt-laden wiring and cable company Leoni AG is among the Germany’s most shorted stocks. The shares have lost two-thirds of their value over the past year and this is hardly unique.The company that best illustrates this slow-burn crisis is Continental AG. Last week the tire and car parts titan announced a massive restructuring, which it said would affect 20,000 jobs over the next decade, or some 8% of the workforce. Explaining its decision, the manufacturer warned of an “emerging crisis in the automotive industry.” Demand is weak and technological requirements are shifting fast. In future it will need more software engineers but fewer people building components for gasoline and diesel engines.Conti’s great rival Robert Bosch GMBH has a big diesel technology business and is preparing for upheaval too. Its chief executive officer Volkmar Denner told Sueddeutsche Zeitung last month that he expects autos production to stagnate. “That’s different from the past when it almost always went up. The tailwind is gone,” he said.With luck these grim warnings will compel the government to reconsider its demand-sapping commitment to a balanced budget. Last week the head of the BDI industry lobby group urged Berlin to consider additional borrowing to fund public investment — a once unthinkable heresy but one that’s common sense when even 30-year German debt yields nothing.However, unlike in 2009 when a domestic car scrappage scheme boosted demand, Germany can’t easily buy itself out of trouble this time. Tens of thousands of well-paid industrial jobs face obsolescence because of the demise of the combustion engine. Electric vehicle drivetrains have far fewer parts and the process is less labor intensive.Germany’s economic power was built on the back of its excellent gasoline and diesel cars. Their inevitable demise puts the country’s position as the “engine of Europe” under threat.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Thyssenkrupp will weed out some potential suitors for its elevator unit within the next two weeks, two people familiar with the matter said, as the closely-watched auction gathers pace regardless of the planned ousting of CEO Guido Kerkhoff. Bidders invited to the next round will likely include private equity groups KKR , Blackstone , CVC [CVC.UL] and Clayton Dubilier & Rice as well as strategic firms Kone and Hitachi , one of the sources said. A consortium consisting of private equity firms Advent and Cinven and the Abu Dhabi Investment Authority, the world's third-biggest sovereign wealth fund, is also expected to be included, the people said.
(Bloomberg) -- Thyssenkrupp AG’s move to fire its chief executive officer at the same time it’s trying to sell off several key businesses shows the company is struggling to stop its downward spiral.Guido Kerkhoff, who took the top job last year, has been under pressure from the supervisory board for moving too slowly to organize sale processes for units, such as components technology. He’ll be replaced on a interim basis by Martina Merz, according to a statement released late on Tuesday.The overhaul at the top adds to the chaos at Thyssenkrupp, which has been hit by an ailing auto industry, trade concerns, falling steel prices and a weakening German economy. There are also now questions about how the company’s sale of its elevator business, estimated to be worth about 15 billion euros ($16.6 billion), will be affected by the surprise leadership change."Tough times are getting tougher for Thyssenkrupp,” said Christian Obst, an analyst at Baader Bank. “We recommend to stay away from any investment.”Kerkhoff’s departure is the second time in two years that Thyssenkrupp has lost a CEO. His predecessor, Heinrich Hiesinger, resigned in 2018 bowing to shareholder anger over the company’s slumping revenue and share price.Thyssenkrupp shares fell 1.8% to 12.25 euros at 10:32 a.m. in Frankfurt. Its share price has been cut in half since the start of 2018 and the company was removed from Germany’s DAX index earlier this month.On Tuesday, Thyssenkrupp announced that it started a process to dismiss Kerkhoff. It’s expected to formally make the leadership changes soon at a supervisory board meeting. Siegfried Russwurm would take Merz’s previous role as chairman for the interim, the company said.‘Crystal Clear’“We are confident that Thyssenkrupp will now finally get a crystal clear strategy and a well-defined plan of action," said Lars Forberg, founding partner of Cevian, which is Thyssenkrupp’s second-largest shareholder.The biggest question for Thyssenkrupp remains how it will proceed with its elevator sale. Kone Oyj has already said it wants a full merger with the elevator business and other potential suitors include about 10 private equity firms.Kerkhoff had previously signaled to private equity bidders that he would prefer to sell a minority stake in the elevator unit to them. That way, the company could retain some control and swerve the kind of issues with competition regulations that torpedoed the planned steel joint venture with Tata Steel Ltd.Surprise TimingThe timing of the leadership change "comes as a surprise to us," said Morgan Stanley analysts including Alain Gabriel. "It remains unclear whether the changes will accelerate portfolio restructuring."In May, Thyssenkrupp announced a strategic U-turn, opening the way for a partial sale of the prized elevator unit and reviewing other operations. These include springs and stabilizers from the auto-parts unit, the system engineering and the heavy plate steel operations, and reductions in overhead structures.Several private equity firms have expressed interest in these activities, but Kerkhoff was focused exclusively on an elevator deal to boost the company’s equity cushion, before turning to the other units.Frustrated with Kerkhoff’s pace, board members informally discussed in the summer a potential replacement, because the company’s financial crisis demanded an executive with restructuring experience, people familiar with the matter told Bloomberg News at the time.Read more: Thyssenkrupp CEO Under Board Pressure to Streamline Business(Updates with Cevian comment under ‘Crystal Clear’ subhead.)To contact the reporters on this story: Eyk Henning in Frankfurt at firstname.lastname@example.org;William Wilkes in Frankfurt at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Thyssenkrupp said it was preparing to replace Chief Executive Guido Kerkhoff, making him the latest casualty at the German steel-to-submarines conglomerate which has been in crisis mode for more than a year. The plan to ditch Kerkhoff after 14 months at the helm follows a loss of confidence among key investors, who no longer believe the 51-year old can deliver on a turnaround that includes selling the group's most profitable division, elevators. Since Kerkhoff became CEO in July 2018, the group has issued four profit warnings.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Thyssenkrupp has started a structured process to look for potential buyers of all or parts of its elevator unit, its most profitable division. Letters asking for expressions of interest for the unit, valued anywhere between 12 billion and 17 billion euros (£11-£15 billion), were sent out to private equity and strategic investors, three people familiar with the matter said. Recipients included private equity groups KKR , Bain, Advent, CVC, EQT, Blackstone , Partners Group and Apollo as well as rivals Kone , Schindler , Otis and Hitachi , the people said.
FRANKFURT/DUESSELDORF (Reuters) - Thyssenkrupp CEO Guido Kerkhoff has little choice but to sell the group's prized elevator division lock, stock and barrel so he can save the conglomerate's remaining businesses, four sources close to the German company said. Kerkhoff's preferred option is to list a minority stake in Thyssenkrupp's Elevator Technology (ET) but with financial pressures mounting on the company, a formal auction process that could get a deal faster has been launched, the sources said. Kerkhoff said earlier this month that management would look at concrete offers and make a decision based on what is best for the group, its shareholders and the division.
Thyssenkrupp is in talks with Kloeckner & Co over future cooperation in materials trading, but is not working on a near-term takeover of the metals firm, three people familiar with the matter said. Shares in Kloeckner & Co were up 7.2%, narrowing earlier gains of as much as 17.7% following a report in German business daily Handelsblatt that cash-strapped Thyssenkrupp is in talks to buy the group. Thyssenkrupp shares were up 0.7% after having risen as much as 4.6%.
BERLIN/FRANKFURT (Reuters) - Steel-to-submarines conglomerate Thyssenkrupp said on Wednesday that its head of compliance Donatus Kaufmann, an executive board member, will leave the company at the end of next month. Thyssenkrupp said in a statement that the departure was part of the "strategic and structural" realignment of the company. Kaufmann, executive board member responsible for legal and compliance as well as North America and Western Europe, had been a member of the management board since February 2014.
German steel distributor Kloeckner & Co is open to playing a role in the consolidation of Thyssenkrupp's materials trading division, including taking a minority stake, its chief executive said on Wednesday. Thyssenkrupp in May unveiled a major restructuring, effectively looking for partners for its business divisions, including Materials Services where it could sell a minority stake to a strategic partner. "We will always look at proposals," Gisbert Ruehl told journalists after presenting second-quarter results, adding that nothing could be ruled out.
German submarines-to-elevators conglomerate Thyssenkrupp said on Tuesday that it planned to drastically cut its carbon dioxide emissions over the next decade, banking on more efficient ways to produce steel, one of its trademark products. "We want to cut our emissions by 30% by 2030 across the entire business," Chief Technology Officer Reinhold Achatz told Reuters. Thyssenkrupp, Europe's second largest steelmaker after ArcelorMittal , produces 20 million tonnes of CO2 a year, equivalent to a 2.6 gigawatt power plant running on lignite, or brown coal, the dirtiest generation technology.
Powerful labour leaders at Thyssenkrupp have called on the group's management to come up with a clear strategy for its steel unit, which will remain part of the conglomerate after a failed attempt to merge it with Tata Steel . Thyssenkrupp's steel unit has come under pressure due to falling prices and high raw material costs and faces 2,000 job cuts, the same level of layoffs that would have been carried out under the previous merger plans with Tata Steel. Thyssenkrupp Steel Europe's second-quarter adjusted operating profit plunged 81% to 37 million euros (33 million pounds).