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German state premier backs Thyssenkrupp chairman, opposes company's breakup

The Krupp foundation will meet on Friday and Knut Giesler, the regional leader of the IG Metall industrial union, said it would be vital for it to back a "sustainable" strategy for ThyssenKrupp

Reuters  |  Duesseldorf, Germany 

Photo: Reuters
Heinrich Hiesinger quit last week after failing to win unanimous board approval for a deal to spin out ThyssenKrupp's steel business into a joint venture with India's Tata Steel Photo: Reuters

The of the German state where is based on Thursday backed the company's in opposing a breakup of the following the resignation of

Cevian, ThyssenKrupp's second-largest shareholder with an 18-per cent stake, has demanded a review of all of ThyssenKrupp's areas, saying each might thrive better in a different set-up. Fellow investor Elliott has also called for a radical overhaul amid broad discontent over strategy.

"We want long-term development, not short-term profits," Armin Laschet, the of North Rhine-Westphalia, said after meeting managers and labour leaders in state capital

Laschet's comments echoed those by Ulrich Lehner, who was quoted on Wednesday as saying that a break-up of was out of the question.

The Alfried von Bohlen und Halbach Foundation, the group's biggest investor with a 21 per cent stake, said this would not happen. Laschet, who sits on the foundation's board, urged dialogue.

"We have to get back to basics," he said. "We bear a great responsibility."

The foundation will meet on Friday and Knut Giesler, the of the IG Metall industrial union, said it would be vital for it to back a "sustainable" strategy for

Hiesinger quit last week after failing to win unanimous board approval for a deal to spin out ThyssenKrupp's into a joint venture with India's

Giesler said he expected a supervisory board subcommittee, which also meets on Friday, to as until a successor can be found.

First Published: Fri, July 13 2018. 06:41 IST
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