Thyssenkrupp said to consider splitting into two companies
Thyssenkrupp AG is considering splitting into two companies by spinning off nonsteel operations, a move that would mark the biggest overhaul of the German conglomerate in decades, according to people familiar with the matter.
Under the scenario being explored, Thyssenkrupp would give existing investors shares of a company that combines elevators, industrial solutions and the components-technology business via an in-kind dividend, the people added, asking not to be identified because the information is private.
Thyssenkrupp would keep a minority stake in the so-called capital goods company, its raw materials trading unit and a 50% stake in the steel joint venture with Tata Steel Europe, the people said. They cautioned that no decision has been made yet and that plans could change.
The shares soared as much as 17% in German trading, the big- gest intraday gain since October 2008, and traded 11% higher at 5.31 pm in Frankfurt.
Cevian Capital, the secondlargest shareholder, supports the plan for a split, according to people familiar with the discussions.
Other options under consideration by Thyssenkrupp, although less likely at the moment, include merging the profitable elevator unit with Finland’s Kone Oyj or an initial public offering of the elevator unit, people familiar with the mattersaid.
Representatives for Thyssenkrupp and Kone didn’t immediately return a call seeking comment.