ThyssenKrupp shares soar on sell-off plans

6th May 2011, Comments 0 comments

Shares in ThyssenKrupp, the biggest German steelmaker, gained more than seven percent in early trading on Friday after the group announced a 10-billion-euro ($14.5 billion) divestment programme.

The shares were being traded in Frankfurt at 31.9 euros ($46.3), up 6.9 percent on Thursday's closing price.

The main divestment concerns its Stainless Global division, worth about 5.9 billion euros, for which "all options (for) continuation of the business activities outside the group are to be investigated," the company said in a statement overnight.

The decision to recentre the firm's activities was taken at a special executive board meeting on Thursday, the company said.

"Current and prospective divestments within the context of portfolio alignment agreed upon by the executive board approximate 10 billion euros and 35,000 employees," the company added.

ThyssenKrupp said it would also be selling its Waupaca group, specializing in iron casting in the United States, along with its Brazilian Automotive Systems business and other automotive activities.

© 2011 AFP

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