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BERLIN – Germany
Thyssenkrupp
AG
TKAMY -2.85%
The current interim managing director, Guido Kerkhoff, will retain his role as CEO on Sunday, as the group's supervisory board approved his plan to split the steel conglomerate into two separately listed companies.
Thyssenkrupp's supervisory board on Sunday approved unanimously the plan presented last week under the leadership of Mr. Kerkhoff to divide Thyssenkrupp into two independent companies, one including the company's materials activities and other activities. capitalization of the group.
Bernhard Pellens, a member of the Board of Directors, had been appointed Chairman of the Supervisory Board and had been tasked with finding a new CEO.
"The concept was developed by the board of directors. For this reason, it is only natural that this board also implement the plan, "said Pellens in a statement.
The appointment of MM. Kerkhoff and Pellens put an end to a management crisis that has lasted for several months in the troubled German industrial group, triggered by a conflict between the former management and activist shareholders on the future of the company.
Former CEO Heinrich Hiesingerquit suddenly took over in July, closely followed by President Ulrich Lehner, citing lack of support from shareholders who had called for improved profitability and a simpler structure. Mr. Kerkhoff, the group's former chief financial officer, has since held the position of CEO.
Now, Mr Kerkhoff faces the difficult task of implementing one of the most spectacular reforms in the group's history since the merger of steelmakers Thyssen and Krupp in 1999, which form the Thyssenkrupp group.
In a bold move that surprised analysts and sparked stock rally, Kerkhoff unveiled last week the plan to allow Thyssenkrupp to remain independent while satisfying shareholders who had advocated radical changes or even a break more large.
The proposal was quickly backed by the group's key stakeholders, including the Swedish activist investor Cevian Capital AB, which holds about 18% of the company and was one of the most outspoken critics of the structure conglomerate of Thyssenkrupp. because of underperforming results.
IG Metall, the largest trade union in Germany, said on Friday that the proposed split was an "opportunity to prevent a fearful split" in the company, but demanded that the plan be implemented without job cuts. Mr Kerkhoff told German television that he was not planning to cut jobs.
Thyssenkrupp now has about 18 months before shareholders are asked to vote on the split in order to detail its plans.
"The announcement is clearly a step in the right direction to unlock hidden value, but we are also asking serious questions," including the costs of spin-offs and new business management, Carsten Riek, an analyst with UBS. note to investors.
Kerkhoff, 50, began his career in the German public service accounting department
VEW
AG
before moving on to the Bertelsmann media group. From 2002, he climbed the ladder of
Deutsche Telekom
,
responsible for the group's European activities until 2011, when he was appointed Chief Financial Officer of Thyssenkrupp.
Thyssenkrupp said the post of CFO and two open supervisory board seats still need to be filled.
Write to Ruth Bender at [email protected]
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