Welcome to the Elevator World News Podcast.
This week’s news podcast is sponsored by elevatorbooks.com: www.elevatorbooks.com
SALE OF THYSSENKRUPP ELEVATOR BEING CONSIDERED BY CEO
Reuters is among news outlets to report that thyssenkrupp CEO Guido Kerkhoff is considering selling the conglomerate's profitable elevator division — valued at up to EUR14 billion (US$15.68 billion) to help stanch profit loss. The news came on the heels of a fourth profit warning issued under Kerkhoff, who assumed the CEO role after the former CEO and group chairman resigned. Quoting unnamed sources, the source said among those interested are KONE and private equity firms KKR, Advent and CVC. Kerkhoff is behind a failed attempt to spin off thyssenkrupp’s capital goods unit and merge the steel division with Tata Steel's European unit. He said he is backed by thyssenkrupp's supervisory board, which includes one of the top two shareholders, Cervian, which has wanted a simplified structure for a long time. The news created excitement among analysts, with Kepler Chevreaux Equity Research Head of Steel Rochus Brauneiser saying the "best move would be to sell a large chunk of the elevator business to pay down debt and fully externalize pensions."
Image credit: photo courtesy of thyssenkrupp-elevator.com
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