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Thyssenkrupp supervisory board to review breakup plan viability - Report

Steel News - Published on Thu, 25 Apr 2019

Image Source: Handelsblatt
Reuters, citing two people familiar with the matter, reported that Thyssenkrupp’s supervisory board plans to stress test the viability of CEO Mr Guido Kerkhoff’s plans to break up the conglomerate given changed market conditions. Thhe sources said “Although the supervisory backed Kerkhoff’s plan when he announced it last year, the board headed by Martina Merz has quietly begun questioning the benefits. The board might call Kerkhoff for a meeting in May to explain his plans.”

Merz, who became head of the supervisory board in February, has indicated that she would not unquestioningly back management plans. Merz said in February in an internal interview for employees “The supervisory board needs to adhere to its duties, to appoint and control the management board, and to act as an advisor.”

Mr Kerkhoff in September laid out plans to separate the company’s elevators, car parts and plant engineering units from its materials trading and shipbuilding businesses. But a global trade war and fears of an uncontrolled exit by Britain from the European Union have spooked markets, making it harder for companies to spin off or list large divisions.

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Posted By : Sanju Moirangthem on Thu, 25 Apr 2019
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