Elliott Takes Thyssenkrupp Stake in Latest Corporate Wrangle -- Update

(Adds background on Elliot's investor activism in Europe)

 
   By Donato Paolo Mancini 
 

Elliott Management Corp. said Thursday that it holds a significant stake in industrial group Thyssenkrupp AG (TKA.XE), heralding the latest in a string of corporate battles the activist investor has waged across Europe.

Elliott Advisors, the U.K. arm of Elliott Management, said its stake is "significant" but remains below the disclosure level mandated by German law, which is 3%.

"Elliott believes Thyssenkrupp has significant scope for operational improvement which would benefit all stakeholders and looks forward to engaging in a constructive dialogue with them in the near future," Elliott said.

Elliott confirmed the position after Bloomberg reported the move earlier this week, citing unnamed sources. Bloomberg said Elliott aims to replace the company's chief executive, Heinrich Hiesinger. Thyssenkrupp shares have lost about a third of their value since Mr. Hiesinger became CEO in 2011, but they jumped as much as 6% on news of Elliott's possible stake.

Elliott, a fund with around $35 billion of assets under management, has been involved in shareholder activism involving European companies including Sky PLC (SKY.LN), Akzo Nobel NV (AKZA.AE) and Telecom Italia (TIT.MI).

In Elliott's proxy battle on Telecom Italia, aimed at simplifying corporate governance, it took two-thirds of the company board seats last month, leaving majority shareholder Vivendi SA (VIV.FR) with just five of 15 seats.

Through its share ownership in Thyssenkrupp, a conglomerate whose products include elevators and submarines, Elliott might pressure Thyssenkrupp to dispose of its material-services business, launch an initial public offering of its steel business and introduce measures to turn around its capital-goods businesses, Jefferies said in a research note.

Elliott said its approach to Thyssenkrupp is consistent with its approach to all investments and said it has spent "significant time and resources analyzing the company."

Write to Donato Paolo Mancini at [e-mail]

(END) Dow Jones Newswires

May 24, 2018 05:41 ET (09:41 GMT)

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