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Kone interested in Thyssenkrupp elevator deal - Report

Steel News - Published on Thu, 16 May 2019

Image Source: Market Screener
Reuters, citing people familiar with the matter, reported that Finland’s Kone is assessing the viability of a bid for Thyssenkrupp’s EUR 14 billion elevators division even as the German conglomerate pursues plans to list it. The sources said it is not clear if Kone could fund an all cash bid and whether or not the deal would face significant anti trust hurdles similar to Thyssenkrupp’s failed steel joint venture with Tata Steel. They said that “This is why Thyssenkrupp’s management prefers the option of an initial public offering. What the company needs is guaranteed proceeds. The IPO is a safe option. Other options are subject to execution risk.”

Thyssenkrupp last week ditched a plan to spin off its capital goods business after months of shareholder criticism, and opted instead to list elevators, its most profitable division, to raise badly needed cash.

Analysts at Barclays said although the merger would be likely to face opposition from Thyssenkrupp’s labour representatives, a deal with Kone would result in EUR 3-4 billion of synergies attributable to the German firm.

Source :

Posted By : Sanju Moirangthem on Thu, 16 May 2019
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