|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||15.12 - 15.12|
|52 Week Range||10.30 - 19.85|
|Beta (3Y Monthly)||1.72|
|PE Ratio (TTM)||1,008.00|
|Forward Dividend & Yield||0.17 (1.13%)|
|1y Target Est||N/A|
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.On the banks of the Ruhr river that flows through Germany’s industrial heartland lies a vast ornamental park with manicured gardens and exotic trees. At its heart sits a neoclassical manor with copper-green roof and Grecian pillars: Villa Huegel, the former home of steel magnate Alfred Krupp.Villa is a misnomer -- the place is more a palace than a residence. There are wood-paneled library rooms, elaborate Flemish tapestries and glittering chandeliers dripping from coffered ceilings. The mansion is a tribute to Krupp’s vast wealth and status as champion of Germany’s breakneck industrial revolution in the nineteenth century. If the Ruhr valley was the economy’s engine room, Villa Huegel was its command bridge.Today, Villa Huegel is a mausoleum of a bygone era. The storied Krupp name has been folded into the portmanteau of the Thyssen and Krupp steel dynasties that merged in 1999 but got little tangible done after that. Once on par with German engineering stalwarts like Siemens AG and Daimler AG, Thyssenkrupp is fading away as Germany’s sputtering economy and management missteps force the company to sell off units to plug holes in its balance sheet.Individual units may well fight on for years, but the bell has tolled for the conglomerate whose steel made the spire of the Chrysler building, powered the Nazi war machine and built the machines that drove China’s rapid growth in the late 20th century.The decline and fall of the Thyssenkrupp empire is a source of concern for politicians who see an omen for the German economy which until now held on to well-paid blue collar jobs. On Nov. 14, Germany releases economic data that may show Europe’s largest economy slipped into recession in the third quarter.Breakup Risk“This basic principle of the social market economy has always been particularly pronounced at Thyssenkrupp,” said German Labor Minister Hubertus Heil of the Social Democratic Party, a political group that’s seen its relevance similarly wane as Germany drifts away from old mass employment industries that formed its political bedrock. “Social responsibility must not be sacrificed to short-term investor interests in the stock market value.”The growing crisis at Thyssenkrupp is making investors’ and workers’ interests in a break-up increasingly aligned: the company needs the cash to pay pensions and keep itself afloat. The foundation that oversees Villa Huegel and is a big stakeholder relies on dividends to meet its outlays, including research grants, cultural bursaries and tending the manicured property.Executives in Essen are currently in talks with suitors for Thyssenkrupp’s most prized asset: the elevator division, a 15-billion euro ($16.56 billion) unit that’s drawn interest from several parties. The firm is also looking at selling its automotive-components operations where profits are falling due to Germany’s worsening car sector. Its heavy plate steel division –- the successor of the Krupp steel mills that fortified Adolf Hitler’s tanks and battleships – is also on the chopping block.‘Downward Trend’“This is the continuation of a downward trend that started after World War II,” said Albrecht Ritschl, a professor of economic history at the London School of Economics. “German heavy industry has never been fully viable under world market conditions, owing to its location atop coalfields that were plentiful but expensive to exploit.”Along with its debt, ignominies for the one-time swaggering giant keep stacking up: the firm tumbled out of Germany’s blue-chip DAX index in September and was replaced by jet-engine manufacturer MTU Aero Engines AG. It’s an exit emblematic of how the industrial future of Europe’s biggest economy rests with high-tech, high-margin players rather than steelmakers.The company’s crisis has put it in the cross hairs of activist investors pushing for change. Sweden’s Cevian Capital AB is the second-biggest shareholder behind the foundation. A spokeswoman for Thyssenkrupp referred to a statement from CEO Martina Merz in September, when she said the company would continue with its strategic realignment as it seeks to regain confidence of investors.Chinese CompetitionThyssenkrupp’s demise points to larger fault lines running through Germany in the twilight of Angela Merkel’s long reign as chancellor. In the short-term, the export-led growth model faces threats from U.S. President Donald Trump’s unresolved trade war with China. Further out, Asian challengers are increasingly competitive in the advanced manufacturing niche that previously proved a rich vein for German jobs.The Made in China 2025 plan has helped firms become the hottest competitor for many German manufacturers, according to a survey from the German Chambers of Commerce. Thyssenkrupp has seen margins at its car-parts businesses steadily decline as that competition from Asian challengers intensifies.“Europe will have trouble remaining in the game against an ambitious Chinese state, which will continue helping its companies in key industrial sectors in order to make China an advanced, sophisticated economy,” said Philippe Le Corre, an expert in Chinese and European economic relations at Carnegie Endowment for International Peace.Steelmaking, Thyssenkrupp’s heart and soul, is facing an existential crisis in Europe. While the cost of permits to emit carbon dioxide steadily rise, cheap imports from abroad continue to crush prices. An attempt by Thyssenkrupp to merge its steel operations with the European unit of India’s Tata Steel Ltd. was scrapped amid European Union antitrust concerns.Bad DecisionsStill, many of Thyssenkrupp’s wounds are self-inflicted. A 2005 decision to conquer the American steel market haunts the company to this day. Management spent more than 12 billion euros for a steel mill in Brazil and a plant in Alabama. Depleted from a downturn in the global market and cost overruns in Brazil, Thyssenkrupp was eventually forced to pull the plug a decade later, a retreat that racked up a total loss of more than 8 billion euros, ranking as one of the biggest failed investments in German corporate history.The combination of flawed business decisions and rising costs have led Thyssenkrupp to burn cash in 10 out of 13 years since 2007, according to data compiled by Bloomberg. Despite a sustained economic boom in Germany, the firm’s overall cash outflow amounts of 5.1 billion euros in that time. Its pension deficit hit 743 million euros in the first nine months of 2019.Add to that management chaos and ballooning administrative costs at the firm’s Essen headquarters. Chief Executive Officer Guido Kerkhoff was ejected after less than a year after failing to sell off units, the same fate suffered by his predecessor, Heinrich Hiesinger, who stepped down amid pressure from activist funds Elliott Capital Management and Cevian.And as Villa Huegel still basks in a glamorous past, hosting award ceremonies and classical concerts in the ballrooms, austerity is starting to bite at Thyssenkrupp’s headquarters a 20-minute drive north of the Ruhr river. Here, office workers on the campus of what was once Germany’s biggest company have been told to display their frugal side and think twice before ordering logo-emblazoned electric blue pens and notebooks.(Updates with new suitor for elevator business)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, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
ESSEN, Germany/FRANKFURT, Nov 12 (Reuters) - Thyssenkrupp has received bids from at least three major bidding groups for a majority stake in Thyssenkrupp's elevator business, four people familiar with the matter said. Thyssenkrupp Elevator Technology (ET), which sources said could fetch as much as 17 billion euros ($18.7 billion), is the German group's most profitable asset and has been put on the block as the conglomerate needs cash for pensions, to cut debt and invest in its other divisions. The bidders are also prepared to take a minority stake if it helps to win over key Thyssenkrupp stakeholders.
ESSEN, Germany/FRANKFURT (Reuters) - Thyssenkrupp has received bids from at least three major bidding groups for a majority stake in Thyssenkrupp's elevator business, four people familiar with the matter said. Thyssenkrupp Elevator Technology (ET), which sources said could fetch as much as 17 billion euros ($18.7 billion), is the German group's most profitable asset and has been put on the block as the conglomerate needs cash for pensions, to cut debt and invest in its other divisions. The bidders are also prepared to take a minority stake if it helps to win over key Thyssenkrupp stakeholders.
The Brazilian-backed private equity group 3G Capital has entered the race to buy the lifts business of Thyssenkrupp, in what would be a shift away from its multibillion-dollar investments in the consumer goods industry. The sale of the elevator business could net Thyssenkrupp as much as $20bn, the people said. , which it controls along with Mr Buffett, failed to acquire Unilever in 2017.
The German industrial giant Thyssenkrupp’s lifts business is set to attract initial bids from at least four would-be buyers in time for a deadline on Friday in what is poised to be one of Europe’s biggest deals. Bidders for the company’s most profitable business include consortiums of some of the world’s largest private equity groups and rival Kone, in a deal that could potentially be worth as much as $20bn. A consortium made up of the private equity groups Blackstone and Carlyle and the Canada Pension Plan Investment Board, one of the world’s largest retirement funds, is preparing a bid, as is a rival group made up of Advent International, Cinven and the Abu Dhabi Investment Authority, according to people familiar with the matter.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of thyssenkrupp AG and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
FRANKFURT/DUESSELDORF (Reuters) - Thyssenkrupp will receive first bids for its elevator division this week, three people familiar with the matter said, as major stakeholders differ over whether the conglomerate should sell a majority stake in its most profitable asset. Finnish rival Kone will submit an indicative bid for Elevator Technology by Friday, teaming up with private equity firm CVC [CVC.UL], which is poised to buy assets that may have to be divested for antitrust reasons, the people said. This plan would help Kone to realize its ambition of becoming the world's largest elevator maker, overtaking Switzerland's Schindler and United Technology Corp's Otis.
Thyssenkrupp will remain committed to its Steel Europe division, which faces 2,000 layoffs, a board member said on Thursday, just weeks before the conglomerate presents a new strategy for the division. Steel and materials trading will form the core of Thyssenkrupp after the planned full or partial sale or listing of its prized elevator unit, and divestment of the majority of its car parts, plant engineering and shipbuilding divisions. "Together with the team at Steel Europe we will build a good future for steel," Klaus Keysberg, who is in charge of Thyssenkrupp's steel and materials trading units, said at an event in Dortmund in the Ruhr region, Germany's industrial heartland.
Top representatives at IG Metall, Germany's biggest union, will not approve a sale of Thyssenkrupp's prized elevator division unless potential buyers give far-reaching concessions to employees, they said. The remarks come as Thyssenkrupp's efforts to list or sell the unit, which some analysts believe could be valued at 17 billion euros ($18.8 billion) or more, with at least 10 bidders shortlisted to submit indicative offers. Labor representatives have always had great influence at the steel-to-submarines conglomerate and hold half of the 20 seats on its supervisory board, with IG Metall members representing the majority of those.
HELSINKI/FRANKFURT, Oct 23 (Reuters) - Kone might sell some parts of Thyssenkrupp's elevator business if the Finnish firm wins an auction to buy it, the CEO of the world's No.3 elevator maker said. Kone is one of at least 10 potential bidders for Thyssenkrupp's 15 billion euro ($16.7 billion) lifts business. The group has for years been keen to buy Thyssenkrupp Elevator Technology (ET), the world's No.4 elevator maker.
FRANKFURT/DUESSELDORF, Germany, Oct 22 (Reuters) - At least ten strategic and private equity firms have been invited to submit indicative bids for Thyssenkrupp's prized elevator division, two people familiar with the matter said. Information memorandums (IM), which include a more detailed account of the unit's finances, were sent to potential bidders last week, the people said. Bids are usually due about four weeks after information packages have been distributed.
Thyssenkrupp's largest shareholder on Thursday dismissed speculation that it had backed calls for a special dividend. The Alfried Krupp von Bohlen und Halbach foundation, Thyssenkrupp's top investor with a 21% stake, had previously remained silent on the subject, even after activist fund Cevian last week denied such demands had been made. "The foundation has never demanded a special dividend," it said.
New Thyssenkrupp chief executive Martina Merz on Wednesday paved the way for deeper job cuts at the ailing conglomerate, telling employees in an internal memo such a step was necessary for a much-needed turnaround. Thrown into crisis by a chain of events that started with activist fund Elliott taking a stake last year, Thyssenkrupp is desperately trying to improve its operating performance and simplify its overly complex structure.
New Thyssenkrupp chief executive Martina Merz on Wednesday paved the way for deeper job cuts at the ailing conglomerate, telling employees in an internal memo such a step was necessary for a much-needed turnaround. Thrown into crisis by a chain of events that started with activist fund Elliott [ECAL.UL] taking a stake last year, Thyssenkrupp is desperately trying to improve its operating performance and simplify its overly complex structure. To do that, it is planning to list or sell its elevator division and is willing to sell majority stakes in its struggling car parts and plant engineering divisions, which Merz said are facing significant changes.
Thyssenkrupp is slashing some administrative jobs to cut down on the more than 2 billion euros ($2.2 billion) 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.