Thyssenkrupp at odds over steel

Thyssenkrupp's supervisory board is at odds over the right strategy for its steel business, business daily Handelsblatt reported yesterday, citing company sources.

CEO Martina Merz wants to present plans for the group to separate its steel division at a special supervisory board meeting on March 31, but some on the management team and trade union IG Metall want to keep it and declare the unit the group's core business, Handelsblatt said.

Thyssenkrupp shares were up 2.2 per cent in pre-market trade at Lang&schwarz after the report.

Merz, with the help of mandated investment bank Goldman Sachs, has attracted the interest of the financial investor CVC Capital Partners, Handelsblatt added.

CVC Capital Partners wants to offer just one euro for the steel division, several people familiar with the transaction told the paper.

CVC would make investment commitments and assume pension liabilities worth billions.

Thyssenkrupp is also hoping for an offer from Brazil's CSN, the newspaper added. The project is still in its early stages, however, and an audit has not yet taken place.

Thyssenkrupp declined to comment when contacted by Reuters.