ThyssenKrupp shareholder wants 'nimble' company

The rapid resignation of Ulrich Lehner, the chairman of German steelmaker ThyssenKrupp's supervisory board, and chief executive Heinrich Hiesinger, could pave the way for a breakup of the conglomerate.

"For ThyssenKrupp to thrive and grow in the long term, its businesses must be focused, entrepreneurial and efficient. They must be nimble. They must be free of excessive costs and bureaucracy. They must be positioned to succeed," Lars Forberg, the founding partner of Cevian Capital, ThyssenKrupp's second largest shareholder with an 18pc stake, said today.

He said "great and enduring companies renew themselves, taking advantage of their strengths while adapting to new challenges and opportunities".

Upon resigning yesterday, Lehner said: "I take this step consciously to enable a fundamental discussion with our shareholders on the future of ThyssenKrupp. My decision may contribute to creating the necessary awareness with all concerned parties that a break-up of the company and the related loss of many jobs is not an option".

Cevian has been pressing for a more radical shake-up, including the potential sale of the company's elevator business. Recently-involved Elliot Management has also been pushing for more asset sales, which Lehner, alongside Hiesinger, had resisted.

Investment bank Jefferies said late yesterday that it was clear ThyssenKrupp "is at a crossroads" and "aggressive restructuring may be in the cards".

"Recent news that Krupp Foundation representative Ursula Gather was personally engaged in talks with the largest individual shareholder of Kone regarding a potential merger of their elevator businesses two years back likely further strengthens Cevian/Elliott's hand in attempting to push for restructuring," Jefferies said in its note.

"It seems fair to assume that activity investors are increasingly likely to come out on top in the current power vacuum," it said.

The activist shareholders were also unhappy with the company's share of the Tata Steel joint venture, which is initially 50:50, rising to 60:40 after an initial public offering. Given the softer financial performance of Tata Steel Europe, they argued ThyssenKrupp should get a larger portion.