The German steel giant Thyssenkrupp returns to no rest. After the planned split-up, the Dax has turned-group-last updated on personnel. Investors are calling for further changes.
The Essen-based group mixes in many areas: steel processing, Autonomous cars, U-boats, wind turbines, elevators, cement factories and and and. This conglomerate structure is less dependent on the economic situation of individual sectors. Nevertheless, it is a thorn in the eye.
Lars Förberg by the Swedish investment company Cevian and Paul Singer, head of the US Fund, Elliott. The activist investors believe that the individual parts of the company in the sum are of more value than the total group. They therefore call for the dismantling of the Dax-group and the spin-off of the profitable Elevator business.
Thyssenkrupp in the crisis
Thyssenkrupp has come in the past ten years, belonging under the wheels. Since the record high in 2008 of 46,63 EUR, the share price has crashed by about 67 percent.
More> information to Thyssenkrupp
<p class="text small" Still, the consequences of a billion expensive bad investment for the giants. As a problem child, only the weak division for plant engineering and construction, but also the steel merger, with the Indian Tata Steel, which could further delay does not apply.
the leadership chaos came in 2018, at the head of the group, triggered by the resignations of long-time CEO Heinrich Hiesinger, and the Chairman of the Supervisory Board, Ulrich Lehner. You had been accused that the company was pleased with its more than 200-year history, under your leadership behind the competition.
Lars Förberg
“The structure of the company is much too complicated,” stressed Förberg already a year ago. “The shares should be worth twice as much.” Lehner called this lack of confidence of the major shareholders as the reason for his departure, and spoke to the “time” of “psycho-terror” and “harassment”. Also Hiesinger resigned from his Post, after it had attacked Elliott-chief Singer sharp.
Expansion of Power?
On the today’s annual General meeting of Thyssenkrupp could strengthen Cevian, now the second-largest shareholder ascended, his influence with the choice of two persons of trust in the Supervisory Board.
It is the Swedes, especially the fact that the individual fields are split off and sold, in order to increase the value for shareholders. This requires the Supervisory Board.
attacks from investors to take
Activist investment companies to attack more and more often companies. They are called activist investors, because they interfere with different than normal Fund companies in active Management. According to a compilation of the US investment Bank Lazard worldwide were taken in the third quarter of 2018 174 of the companies to be targeted – more than in the entire previous year.
For Europe, was one of Goldman Sachs in the first half of last year, 19 campaigns against corporations, and for the year as a whole of 38 attacks. This is an increase of almost 50 percent from 2017. In Germany especially, as the largest economy on the continent in focus.
Always according to the same method as
For your attacks Cevian, Elliott and co. find themselves usually struggling large corporations. “Healthy companies that are overlooked, misunderstood, or in the case of the investors in disgrace are like” – so Cevian describes its focus.
First, the funds to buy right inconspicuous share of the new target. Later, they are expanding their inventory, however, and set out to disassemble the large companies in individual parts. To a lot of stocks don’t want to have investors but, in order to keep in the event of failure the losses to a minimum.
For the conversion or the merger, the responsible practice, if it must be, duly pressure on the business line, by press campaigns, or even actions for damages. The statistics are the activist investors, however, partly right: Two-thirds of the attacks, according to the consulting firm McKinsey successful and increase earnings.
1/5 Activist investors engage German companies
