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Thyssenkrupp CEO Prefers Selling Minority Stake In Elevator Division : Report

Thyssenkrupp AG's (TYEKF.PK) Chief Executive Officer Guido Kerkhoff has indicated to private equity suitors he prefers selling only a minority stake in its elevator division, while retaining control of the company's crown jewel, Bloomberg reported citing people familiar with the matter.

The company's management have floated the idea of selling a 49% stake in the elevator unit to buyout firms along with added governance rights, the report 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, the report said.

Several investment firms will start making proposals next week, with elevator companies likely to follow afterward. Some of the buyout firms may express an interest in a majority stake, the report 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.

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