DUESSELDORF Aug 10 ThyssenKrupp has begun
sounding out investors on a capital increase planned for the
autumn, financial sources said, but the German steelmaker said
it would have to reach a deal to sell its operations in the
Americas before making any decision.
Earlier the Sueddeutsche Zeitung newspaper reported that
ThyssenKrupp, which is due to report third-quarter
results on Tuesday, was poised to sell up to 1 billion euros
($1.3 billion) in new shares. It cited company sources and
political sources in the Ruhr region.
The newspaper said the sale would take place in September at
the very latest, possibly even in August.
A spokesman for ThyssenKrupp said, however, that any
decision to bolster its balance sheet would be taken only after
the company clinches a sale of Steel Americas, its troubled
steel operations in Brazil and the U.S. state of Alabama.
Several financial sources confirmed that enticing investors
to buy into a capital hike before the sale of that business made
"A capital hike before the sale of the steel operations is
unlikely. That would mean a very deep discount," one of the
ThyssenKrupp currently is in advanced talks with a preferred
bidder, who the sources identify as Brazilian steelmaker CSN
. It said in May it expected to reach an agreement
But two sources familiar with the situation said late last
month that the steelmaker was unlikely to meet its end-September
deadline for selling Steel Americas, and the
financial sources confirmed at the weekend that the sale still
appeared far from imminent.