Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Rheinische Post: ThyssenKrupp Mulls Selling Part Of European Steel Business

German steel giant ThyssenKrupp AG (TYEKF) is exploring the possibility of selling part of its European steel business, the Rheinische Post reported Saturday, citing sources close to the company. The sale would reportedly concern a minority stake.

ThyssenKrupp had said in February that it will cut 2,000 jobs as part of a restructuring program at its European steel business amid a "worsening steel climate in Europe". At that time, the company also said it was looking into the closure, relocation or sale of business units and facilities at Steel Europe, which currently has a workforce of around 27,600.

State-owned RAG Foundation is reportedly considering buying a stake in ThyssenKrupp. The move would ensure that the German state of North Rhine-Westphalia, which owns the RAG Foundation, would maintain its veto power after a possible increase in ThyssenKrupp's capital stock.

Currently the Krupp Foundation holds 25.3 percent of ThyssenKrupp's shares. However, that stake could reduce to 17 percent after a possible capital increase and as it reportedly lacks funds to buy more shares.

In mid-May, ThyssenKrupp reported a wider loss for its second quarter as results were impacted by a further impairment charge of 683 million euros associated with its Brazil and US steel plants that it is divesting.

The company's net loss for the quarter widened to 656 million euros or 1.28 euros per share from 587 million euros or 1.14 euros per share in the year-ago period.

TYEKF closed Friday's trading at $19.86, up $1.26 or 6.77 percent on a volume of 900 shares.

Register
To receive FREE breaking news email alerts for ThyssenKrupp AG and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
A ban on athletes using stamina-boosting gases - xenon and argon - came into effect on Monday. The World Anti-Doping Agency (WADA) said Hypoxia-Inducible Factor (HIF) activators Xenon and Argon have been added to the 2014 List of Prohibited Substances and Methods List following the required three-month notice period and UNESCO's communication to all States Parties. A recommendation to revise the British manufacturing growth eased further in August to its lowest level in 14 months as output and demand increased at slower rates, survey results from Markit Economics showed Monday. The Markit/CIPS Purchasing Managers' Index dropped to 52.5 from a revised 54.8 in July. Economists had expected the score to fall to 55.1 from July's original figure of 55.4. Consumers spent less in July than in the previous month, a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving. Along with the unexpected drop in spending, government figures released on Friday showed that incomes rose at a slower pace in July than in the previous month. Meanwhile, data on prices indicated that inflation pressures remain tame.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.