Guido Kerkhoff should be seen only as an interim CEO of Thyssenkrupp: Elliot Management

Elliot Management and Swedish activist investor Cevian are pushing for Thyssenkrupp to continue on its path of “structural evolution”, a change in its overall strategy as well as appointing a permanent CEO.

In a move that is aimed at changing the leadership and thus the strategy of Thyssenkrupp, activist investor Elliot Management told the German conglomerate’s supervisory board that it should replace Guido Kerkhoff as its CEO with a new external candidate.

Kerkhoff became the conglomerate’s CEO following Heinrich Hiesinger resignation this month. Earlier this week, Ulrich Lehner, Thyssenkrupp’s chairman also submitted his paper. The duo had resisted investor calls to restructure the industrial conglomerate.

In its letter to the board, Elliot said, Kerkhoff should be seen as an interim solution.

“Shareholders expect an unbiased search for a new external CEO, driven by what is best for the company and all of its stakeholders, including shareholders,” reads Elliott’s letter, which it made available on today. It goes on to state, “However, this interim period must be kept short so that Thyssenkrupp may quickly be set on a path to prosperity and growth”.

Underscoring the need for Thyssenkrupp to continue on its path of “structural evolution” Elliott stated it had never demanded a complete dismantling of the conglomerate and was very disappointed with the terms of the deal struck with Tata Steel.

According to information available in Thyssenkrupp’s latest filing, Elliott has a stake of less than 3% in the conglomerate while Cevian, a Swedish activist investor has an 18% stake.

Advertisements


Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

Tags: , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: