ThyssenKrupp Higher on Report, May Sell Automotive Division

Shares in ThyssenKrupp AG rose sharply in early trade yesterday on the back of a report in the Wall Street Journal stating that the steel conglomerate is preparing for the potential sale of its automotive division, dealers said. The sale of ThyssenKrupp Automotive AG, which the Journal said was likely to bring in about $3.6 billion, would raise cash for Germany's biggest steelmaker as it waits to see if it can buy Dofasco Inc of Canada for $4.6 billion.

From AFX News Limited

FRANKFURT — Shares in ThyssenKrupp AG rose sharply in early trade yesterday on the back of a report in the Wall Street Journal stating that the steel conglomerate is preparing for the potential sale of its automotive division, dealers said.

The sale of ThyssenKrupp Automotive AG, which the Journal said was likely to bring in about $3.6 billion, would raise cash for Germany’s biggest steelmaker as it waits to see if it can buy Dofasco Inc of Canada for $4.6 billion.

“A sale of the unit would be positive, as it is a problem child at the group,” one dealer said, adding that the news should push the shares higher today.

However, he added that in his view a takeover of Dofasco is negative for ThyssenKrupp, as the Canadian company’s fourth quarter results showed several signs of weakness.

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