From AFX News Limited
DUESSELDORF — ThyssenKrupp AG is not planning to sell its automotive division, ThyssenKrupp Automotive AG, said CEO Ekkehard Schulz.
Several media reports had earlier suggested that ThyssenKrupp was in talks to sell its U.S. automotive division.
If the division were to be sold, it could fetch up to approximately $3.6 billion, the reports said, providing the steel manufacturer with the financial muscle it needs to pursue current plans to buy Canadian-based Dofasco Inc for $4.6 billion from Mittal Steel Co.
Mittal is in turn bidding for Arcelor SA.
A combination of increased competition within the industry and rising raw materials prices have led to weak returns for Thyssenkrupp’s automotive operations.
Schulz has said on several occasions that restructuring of its U.S. operations will be necessary.
Copyright 2006 AFX News Limited. All Rights Reserved.
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