Special Situations
TKA: Spin & JV Plans Meet Their Demise
The planned break-up is dead - and German industrial conglomerate Thyssenkrupp AG (TKA GY) must now reevaluate its value creation options as the Tata Steel JV also falls through due to European competition regulations. The company now plans to list the profitable Elevators business via an IPO and seek other partners (likely within the EU) for its Steel operations. The stock popped as a result (+28%), though now the pressure is on to justify that jump against its long-term underperformance.

  • Previous Industrial Segment Spinoff Plans Scuttled / TKA Now Reevaluating Value Creation Options
  • German Government, EU Regulators & Activists (Cevian & Elliott) Warned Against Break-Up
  • Tata Steel JV Also Falls Through / Required Concessions Negated Strategic Purpose of JV
  • Investors Recommended Exit at Current Levels on Lack of Near-Term Catalysts
  • TKA GY Exits the ESS Model Portfolio at the End of Tomorrow's (May 15) VWAP
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