Thyssenkrupp faces aggressive restructuring after bosses quit
Turmoil has erupted at German industrial giant Thyssenkrupp after a mega deal merging its steelmaking arm with India's Tata, with its bosses quitting amid an acrimonious battle with shareholders on whether to break up the venerable institution. The leadership chaos sparked fears of further job losses as some key investors push for redical surgery on the two-century-old conglomerate that makes everything from elevators and submarines to car components, turnkey industrial installations and steel. "It is clear that Thyssenkrupp is at a crossroads... aggressive restructuring may be in the cards," analysts at US investment bank Jefferies wrote Tuesday after supervisory board chief Ulrich Lehner followed chief executive Heinrich Hiesinger out of the door late yesterday. Bosses had hoped to find 400 to 500 million euros of annual savings, in part by shedding up to 4,000 jobs, persuaded that the merger would secure Thyssenkrupp's historic core against competition from a global flood of cheap Chinese steel. But activist shareholders like Swedish investment firm Cevian and the US hedge fund Elliott want management to go further.