|Bid||12.72 x 142800|
|Ask||12.73 x 10700|
|Day's Range||12.61 - 12.88|
|52 Week Range||9.25 - 23.50|
|Beta (3Y Monthly)||0.71|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 21, 2019|
|Forward Dividend & Yield||0.15 (1.16%)|
|1y Target Est||22.24|
Advent International, Cinven and the Abu Dhabi Investment Authority are teaming up to bid for Thyssenkrupp’s lifts business, setting the stage for a multibillion-euro battle, said people familiar with the matter. Thyssenkrupp is examining options for its most profitable business amid pressure from activist investors, including Cevian and Elliott, who have been pushing for the German conglomerate to slim down after several profits warnings. A joint bid from Advent, Cinven and the Abu Dhabi Investment Authority is likely to face competition from Kone, the Finnish maker of elevators, and Japan’s Hitachi, for a business that could fetch more than $20bn, the people said.
Finland's Kone is open to a co-shareholding structure in a potential deal to merge with Thyssenkrupp's elevator division, its chief executive told Bloomberg News. "Clearly, we would welcome Thyssenkrupp as an owner in this new entity and that way share the long-term benefits with us," Henrik Ehrnrooth told the agency in an interview. Kone could bid for Thyssenkrupp's elevator division - which the ailing conglomerate has put up for sale - through a mix of cash and shares, which might give Thyssenkrupp a minority stake in the merged entity, people close to the deal have said.
Finland's Kone has hired German law firm Hengeler Mueller to advise it on a planned takeover bid for Thyssenkrupp's elevator division, two people familiar with the matter said. The move underscores Kone's strategic interest in the business, which analysts say could be worth as much as 17 billion euros ($19 billion) and which Thyssenkrupp has put up for sale as part of a broader restructuring. Kone and Hengeler Mueller both declined to comment.
(Bloomberg) -- Thyssenkrupp AG Chief Executive Officer Guido Kerkhoff has signaled to private equity suitors he prefers selling only a minority stake in its elevator division to raise much-needed cash while retaining control of the beleaguered conglomerate’s crown jewel, people familiar with the matter said.Top management have floated the idea of selling a 49% stake in the elevator unit to buyout firms along with added governance rights, said the people, who asked not to be identified because discussions are private. That structure could generate enough money to address funding and pension needs while allowing Thyssenkrupp to benefit from a private equity-managed improvement of the business, followed by an eventual listing or sale in the years ahead, they said.Thyssenkrupp this week invited about 10 private equity firms as well as four rival elevator manufacturers to bid for the business, which could be valued at more than 15 billion euros ($16.6 billion), according to the people. Several investment firms will start making proposals next week, with elevator companies likely to follow afterward, they said. Some of the buyout firms may express an interest in a majority stake, the people said.Kerkhoff had previously planned an initial public offering of the unit. The company’s worsening financial performance and a slowing German economy has forced him to look at partial or full sale, which could fetch a higher price and bring in cash sooner.Thyssenkrupp shares fell 2.3% to 11.95 euros on Monday, valuing the group at 7.4 billion euros. Compromise DealWhile Thyssenkrupp and its advisers will review all proposals, the CEO sees a partial sale to private equity as a compromise between an IPO -- which would raise less money and take longer -- and a full exit that would leave the struggling group with underperforming assets, the people said.“In addition to preparing for the IPO, we are also examining expressions of interest from potentially interested parties,” Thyssenkrupp said in a statement. “We are doing this diligently. We have therefore initiated a structured process to evaluate offers from strategic and financial investors ensuring a decision that is sustainable and the best for Thyssenkrupp and its stakeholders.”Thyssenkrupp also sees the merits of a private equity buyer over a tie-up with another competitor because it would avoid the risks of a long antitrust review, the people said. The Essen-based firm was burned earlier this year when European regulators derailed a planned steel joint venture with Tata Steel Ltd.Thyssenkrupp is broadening the process and ramping up competitive tension as Finnish rival Kone Oyj works on a takeover offer for the elevator business. The longtime suitor has pitched potential cost savings and the advantages of creating a larger industry leader, the people said. In an interview with the Rheinische Post newspaper published Thursday, Kone CEO Henrik Ehrnrooth said the elevator division of Thyssenkrupp “would be a perfect match.”Kone, which has lined up financing for its planned bid, could also seek a buyout partner for certain assets to preempt pushback from antitrust regulators, they said. Several private equity firms have already approached Kone about the idea, the people said. The Finnish could also offer a higher price and a break fee to cover the antitrust risk, two of the people said.Antitrust ApprovalsApollo Global Management Inc., Advent International, Blackstone Group Inc., Brookfield Asset Management Inc., Clayton Dubilier & Rice, Cinven, CVC Capital Partners, EQT Partners and KKR & Co. are among investment firms that were invited to submit offers, according to the people. Some of the private equity suitors are considering teaming up and may seek backing from Asian or Canadian sovereign and pension funds, the people said.Japan’s Hitachi Ltd. is also working with an adviser as it pursues a potential offer for all or part of the elevator business, the people said. The Tokyo-based company may also wait and pick up any assets that the ultimate buyer has to sell to get antitrust approval, the people said.No final decisions have been made, and there’s no certainty the suitors will proceed to submit bids, the people said. Representatives for Advent, Blackstone, Brookfield, CVC, EQT, KKR, Cinven and Kone declined to comment. Representatives for Apollo, CD&R and Hitachi didn’t immediately respond to requests for comment.Some within Thyssenkrupp’s powerful labor unions would also prefer bids from private equity firms or Hitachi because they believe a tie-up with Kone would be more likely to lead to job losses, according to one person. Equity investors and labor unions are equally represented on Thyssenkrupp’s supervisory board, giving them both influence over a potential deal.Activist investor Cevian Capital, Thyssenkrupp’s second-biggest shareholder, prefers a full sale of the elevator business, the people said. A representative for Cevian declined to comment.(Adds shares in fifth paragraph.)\--With assistance from Jan-Henrik Förster, Dinesh Nair, Michael Hytha and Eyk Henning.To contact the reporters on this story: Aaron Kirchfeld in London at email@example.com;William Wilkes in Frankfurt at firstname.lastname@example.org;Sarah Syed in London at email@example.comTo contact the editors responsible for this story: Reed Landberg at firstname.lastname@example.org, ;Daniel Hauck at email@example.com, Ben Scent, Aaron KirchfeldFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
FRANKFURT/DUESSELDORF, Germany, Sept 5 (Reuters) - Finland's Kone is considering teaming up with a private equity partner to bid for Thyssenkrupp's elevator business, three people familiar with the matter said. Kone has long been interested in Elevator Technology (ET) - which analysts say could be worth as much as 17 billion euros ($19 billion) - and has been exploring options for a deal with the help of Bank of America, sources told Reuters in May.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Finland's Kone is considering teaming up with a private equity partner to bid for Thyssenkrupp's elevator business, three people familiar with the matter said. Kone has long been interested in Elevator Technology (ET) - which analysts say could be worth as much as 17 billion euros ($19 billion) - and has been exploring options for a deal with the help of Bank of America , sources told Reuters in May. No final decision has been made and Kone could still decide to submit an offer for the unit on its own, the people said.
FRANKFURT/BERLIN, Sept 5 (Reuters) - Private equity firm KKR is preparing for a stock market flotation or sale of German defence supplier Hensoldt in a potential 2 billion euro ($2.2 billion) deal, people close to the matter said. The buyout group has in recent weeks listened to bankers present options for exiting its investment, including a listing of 20-30% on the stock exchange or a sale to a defence group or private equity business next year, they said, adding KKR was expected to hire an adviser soon to help arrange a deal. KKR declined to comment.
FRANKFURT/BERLIN, Sept 5 (Reuters) - Private equity firm KKR is initiating preparations for a stock market flotation or sale of German defence supplier Hensoldt in a potential 2 billion euro ($2.2 billion) deal, people close to the matter said. The buyout group has in recent weeks listened to bankers present exit options, including a listing of 20-30% on the stock exchange or a sale to a defence group or private equity investor next year, they said, adding that KKR is expected to soon mandate an advisor to help organise the deal. KKR declined to comment.
(Bloomberg) -- Thyssenkrupp AG informed potential buyers of its elevator business that the crisis-hit firm will consider a range of bids for the unit, according to people familiar with the matter.The company sent a letter Wednesday to potential investors in the elevator division, indicating it would be open to both minority and majority offers for the unit, said the people, who asked not to be identified discussing private information. The company had previously said it planned a minority public listing for the elevator business.A range of investors are interested in acquiring all or part of Thyssenkrupp’s elevator unit after the company in May said it was interested in listing the division to shore up its ailing balance sheet. Chief Executive Officer Guido Kerkhoff envisaged a listing of a minority of shares that would allow the submarine-to-steel conglomerate to keep profits generated by the unit which is riding a global megatrend for urbanization.“We have clearly stated that, in addition to preparing for the IPO, we are also examining expressions of interest from potentially interested parties,” the company said Wednesday. “We are doing this diligently. We have therefore initiated a structured process to evaluate offers from strategic and financial investors ensuring a decision that is sustainable and the best for Thyssenkrupp and its stakeholders.”Thyssenkrupp shares rose as much as 5.5% to 11.21 euros, and traded at 11.03 euros at 2:21 p.m. in Frankfurt.Among industry rivals, Finnish elevator maker and longtime suitor Kone Oyj has expressed interest in the division, people familiar with the matter have previously said. Private equity firms including Advent International, Bain Capital, CVC Capital Partners and KKR & Co. are also interested, the people have said. Analysts have also suggested Hitachi Ltd. may be a good match. Thyssenkrupp is poised to open a data room for potential buyers this month, the people said in July. The German conglomerate, when examining bids, will need to balance the goal of seeking the highest price as well as risks to completion. Kone, for example, is keen to buy a majority of the elevator business, but Thyssenkrupp is concerned about a lengthy antitrust review and rejection of a merger, people have said.The division, Thyssenkrupp’s crown jewel, makes parts used in elevators, escalators, moving walkways and stairlifts and could be worth about 15 billion euros in an IPO or sale, according to Bloomberg Intelligence analysts.Thyssenkrupp, among the last of Germany’s giant conglomerates, last month cut its profit outlook and said it was considering a major breakup as Europe’s economic slowdown bites. The stock has lost 27% this year, making it the second-worst performer on Germany’s benchmark DAX index this year.(Updates with share price, details)\--With assistance from Aaron Kirchfeld.To contact the reporters on this story: William Wilkes in Frankfurt at firstname.lastname@example.org;Eyk Henning in Frankfurt at email@example.comTo contact the editors responsible for this story: Reed Landberg at firstname.lastname@example.org, Liezel Hill, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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 ($13-$19 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 exploring a near-term takeover of the metals firm, three people familiar with the matter said. Shares in Kloeckner & Co rose 12.6% on Friday, boosted by a report in German business daily Handelsblatt that cash-strapped Thyssenkrupp is in talks to buy the group, raising its market capitalisation to 544 million euros ($602 million). Thyssenkrupp shares were up 1%.
Trade conflicts and a weakening global economy have hit growth in Germany's export-reliant machine-building sector, data showed on Wednesday, adding to signs that Europe's largest economy could slip into a recession. Exports grew by just 0.9% to 89.2 billion euros ($99 billion) in the first half of the year, according to figures released by industry association VDMA, as growth in the first quarter was all but wiped out by a contraction in the second.
Europe stocks traded sharpy lower on Wednesday after data showing the Continent’s largest economy contracted and eurozone industrial production declined.
Moody's Investors Service ("Moody's") has today downgraded to Ba3 from Ba2 the corporate family rating (CFR) and to Ba3-PD from Ba2-PD the probability of default rating (PDR) of German steel and diversified industrial company thyssenkrupp AG ("tk" or "group"). Concurrently, Moody's has downgraded to Ba3 from Ba2 the ratings on the group's senior unsecured debt instruments, including the downgrade to (P)Ba3 from (P)Ba2 of the ratings on the debt issuance programme. Moody's has further affirmed the short-term ratings of tk at NP/(P)NP.