ThyssenKrupp AG (TKA)’s second-largest holder wants to raise its stake in the company, Manager Magazin reported, sending the shares to their highest in nine months.
Cevian Capital AB will seek to raise its stake in Germany’s largest steelmaker to 10 percent by year-end from 6.1 percent, the magazine reported, citing unidentified people. The shares advanced 0.5 percent to 19.095 euros in Frankfurt trading, the highest intraday level since Jan. 11, before retreating after the companies declined to comment on the story.
The stock has gained 8 percent since Sept. 24, the day before Cevian raised its holding from a minor stake, fueling speculation that greater participation by the Swedish investment company will spur restructuring. The producer has been trying to expand its non-steel business and offload its unprofitable Steel Americas division to weather a decline in demand.
Cevian wants a supervisory board seat, which ThyssenKrupp management may agree to, reducing the seats of its largest investor, the Alfried Krupp von Bohlen und Halbach Foundation, from 3 to 2, Manager Magazin reported.
Spokesmen for Cevian and ThyssenKrupp both declined to comment when phoned by Bloomberg News. The foundation didn’t return a call. The shares declined 0.4 percent to 18.915 euros at 3:07 p.m.
“If an investor buys such a big share, it has given a lot of thought to this move; some imitated that,” Christian Obst, an analyst at Baader Bank AG (BWB), said by phone from Munich.
It is “conceivable that Cevian Capital will participate in possible capital measures and thereby will increase its stake,” Roland Klein, a spokesman for Cevian at CNC Communications, said on Sept. 25. It isn’t interested in taking over ThyssenKrupp and normally holds stakes for at least five years, he said at the time.
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