German group ThyssenKrupp gains protection from hostile takeover

0 Comments | AFP, December, 2006

BERLIN (AFP) — A large investor in German steel group ThyssenKrupp, the Krupp foundation, has acquired a blocking minority shareholding in the group, the company announced. The shareholding of 25.1 percent, increased from a previous 23.7 percent, would make it almost impossible for a hostile takeover bid for the company to succeed.

Under German law, shareholders are required to disclose their holding in a company when they breach various ownership thresholds, including 25 percent. The Krupp Foundation made the declaration with a public notice in the Boersen-Zeitung newspaper. ThyssenKrupp is not considered a takeover target at present, but given the rapid consolidation of the global steel industry the company could become a target for a larger rival. Among a number of deals...