ThyssenKrupp AG shareholder Elliott Management asked the German conglomerate to secure a more favorable European steel joint venture deal with Tata Steel Ltd.
The shareholder believes that Tata's recent underperformance has skewed the balance against ThyssenKrupp to the tune of €1.9 billion less for the German group if the deal proceeds in its current form, Bloomberg News reported June 11, citing a letter Elliott sent to company management. This may make it harder for ThyssenKrupp CEO Heinrich Hiesinger to close the deal as it stands. The European steel tie-up still needs approval from the German company's supervisory board.
The company's second-largest shareholder, Cevian Capital, also has similar reservations about the deal, people familiar with the matter told Bloomberg, adding that Cevian wants ThyssenKrupp to get €2.5 billion if the deal goes through. Labor groups have also outlined reservations about the deal.
