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Breakingviews: ThyssenKrupp capital hike not steely enough

Monday, Dec 02, 2013 - 04:01

Dec. 2 - German steelmaker ThyssenKrupp is raising $1.6 bln selling assets to Arcelor and Nippon Steel. But even these measures won’t be enough to put it in the comfort zone, argues Breakingviews.

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So the market are reacting to favorably to -- -- Thyssen -- and its capital -- breaking news says the -- may not suffice. Chris uses Roy is breaking news dot emea edits on joins -- now I'm. You're wearing -- -- not -- OPEC is wary about this this capital -- point. Well whatever we can't disappointed by what this then came out with a over the week and just to recount. As some mixed news on that disposal program. All the one -- the happen able to sell. Some of the US assets. To the in the -- -- from the -- But on the down slide. Keeping all the problematic. Brazilians still -- on another asset disposal. The they have put on the way it is now unraveling because supply. Hasn't been to settle some of you that's part of regularly treat -- site. Net net and it all together and. Actually this disposal program. Really is very very. Very badly and -- they needed because they've got such. The week that we balance sheets and now. I have the tent -- -- -- to to plug the cap what does that gap but it's. Well they're looking to raise. Potentially is marxists. I've been in the era in his fathers have pressed kind of economy raised so much about being pushed into. Doing a rights issue -- this says. Mean not to the market is music case the company already -- noting that comes going to be. Coming -- investors are asking them to stump -- who says that 67%. Today -- Thomas -- that I have a very. Compelling investment story say you've already lost money on this and another saying hey could you stump up some more to help -- -- thug that. You sit well what's investment case. Well it's tricky because. That they've asked the result that the special programs that happened succeeded very confident that that's efficiently. But that's still left which really with the worst asset so that's going to be the the terrain management times that -- financially. That's the risk of more write downs he's disposals will want to have achieved on Keenan's brutal. I. A company that it -- would -- as others often these mechanisms in place is compensation mechanisms that's one in place here. I guess compensated upon as if it is to performance develops -- of an expected to have reset everything about how this mechanism. But you think that is having awareness. Tomorrow. Honestly do these on Phoenix's -- still so on the one hand. You've colts. That -- in -- having to -- in the back if that if that festivals and form. Though for some signed agreements for. -- and get some guarantees. Steel purchases on the other hand say it's what you want as investors want to clean break coming at a even if it's disappointing processes and you know who exactly what the investment story is. And it. Tell -- how that he would say what he does it. You can see very clearly how. There is straight from from from an informal counselor because. These so thoughtful well they should go further right councils that have abolishing war and while to be fat suits this and that has actually achieve some degree of operational. Turnaround. With the with -- its core assets student generated -- -- Austria. You know it's those same as the legacy stuff that is tracking it down that you're going to be quite wary of something that would have to help -- cup comes that. Pittsburgh if that is separating his take on that hasn't -- Story this morning you find out of course on the breaking news sites for more agenda setting aside what's our US spring we share every -- -- things incidents including AT&T. -- -- -- --

Breakingviews: ThyssenKrupp capital hike not steely enough

Monday, Dec 02, 2013 - 04:01

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