Thyssenkrupp AG: Great Potential - Both Upside And Downside

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About: thyssenkrupp AG (TKAMY), TYEKF
by: Christoph Liu
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Christoph Liu
Growth at reasonable price, long-term horizon, dividend
Summary

Thyssenkrupp AG CEO Kerkhoff came at odds with major shareholders, including Cevian Capital, regarding a sale of the elevator division and a distribution of the proceeds via a special dividend.

Cevian is reported to have demanded at least half of the proceeds to be distributed to shareholders.

Given the estimated value of the division, such distribution could easily exceed the company's current market value, thus essentially giving investors a "free chance" when buying the stock.

This clearly looks like an interesting play for new investors.

However, the remaining Thyssenkrupp would clearly be weakened without both the elevator business and the capital raised from its sale, leaving considerable downside for shareholders in the long run.

One important note: I wrote this article on Sunday, September 29th; there may have been more recent developments until publication.

Thyssenkrupp AG (OTCPK:TYEKF) (OTCPK:TKAMY) faces its second major leadership shake-up in