ThyssenKrupp spikes on lift unit sale speculation

Thursday, 16. May 2019 09:35

ThyssenKrupp AG was catapulted as much as 7.23% to the top of the Stoxx Europe 600 index at the start of trading on Thursday, taking back some of the sharp losses suffered since the last quarterly update and subsequent cuts in share price targets by analysts in major investment banks. The rebound came on the back of an unconfirmed media report that Kone Oyj from Finland may make an offer for its elevator division, with the value speculated to be €14 billion. The German company has revealed plans for a separate listing of the unit.

A spinoff and an initial public offering would be the better option, Jefferies said today and slashed ThyssenKrupp's target to €18 from €20 per share, maintaining the buy rating. The transaction would help the restructuring efforts, while a merger would bring regulatory risk and stall progress for a minimum of two years, its analysts added but also highlighted the potential synergies.

Shares were 5.49% up at 9:18 am CET, selling for €12.775 or 14.72% less than at the end of last year. The benchmark DAX surged 13.95% year to date. Kone jumped 2.93% to €50.26 per share.

Related Links: KONE CorporationThyssenKrupp AG
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