Thyssenkrupp Accepts CEO Resignation; Successor to Be Sought

By Nathan Allen

Thyssenkrupp AG's (TKA.XE) supervisory board accepted Chief Executive Heinrich Hiesinger's resignation on Friday, saying the management board would continue its work without him while a successor is sought.

Mr. Hiesinger submitted his resignation late Thursday, almost a week after the company agreed to merge its European steel operations with Tata Steel Ltd. (500470.BY).

The supervisory board will seek a new chief executive in a "structured process," it said.

After taking up the CEO position in 2011 Mr Hiesinger embarked on a sweeping restructuring effort, reducing the conglomerate's reliance on steel production and sharpening its focus on more profitable capital-goods manufacturing.

The board thanked Mr. Hiesinger for his leadership, saying he had put his mark on Thyssenkrupp and "saved the company from collapse."

Over the past months, Mr. Hiesinger faced pressure from activist investors Elliott Management Corp. and Cevian Capital, which were dissatisfied with the speed and execution of his turnaround strategy and were critical of the deal with Tata.

"In the difficult situation the company faces at present, it is important to stay on course," Thyssenkrupp said, including the completion of the steel transaction.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

July 06, 2018 09:25 ET (13:25 GMT)

Thyssenkrupp (PK) (USOTC:TKAMY)
Historical Stock Chart
From May 2024 to Jun 2024