Shareholders accuse Thyssenkrupp of labor reps complicating steel sales

Two days before the supervisory board was due to meet and discuss the progress, the shareholder representatives of Thyssenkrupp accused their union counterparts of complicating plans to sell the steel unit of the group.

Thyssenkrupp Steel Europe's sale, which is tied closely to Germany's industrial history, has been fraught by difficulties. This is mainly because the unit requires billions of euro to invest to regain its competitiveness.

In a statement issued jointly, the shareholder representatives of the supervisory board criticized the approach taken by the labour representatives to the negotiations.

They wrote: "We urge those responsible to not inflame the situation further", including by giving the employees the impression of massive job loss.

Ursula Gather, head of Krupp Foundation and largest shareholder, Siegfried Russwurm, were also signatories.

A request for comment from the labour representatives was not responded to immediately. The supervisory council is scheduled to meet Thursday to continue discussions on the unit's financial situation.

Last week, the IG Metall union warned workers to "fight back and stop (Thyssenkrupp's CEO Miguel) Lopez immediately" over a restructuring program for the steel subsidiary.

Thyssenkrupp will reduce its stake in this unit. This requires an additional 1.3 billion euro ($1.4 billion) of funds that its parent company is not willing to pay for the separation.

Lopez is looking to cut production capacity because of weak demand, and to form a joint venture 50:50 with Daniel Kretinsky's energy holding company. (Reporting and writing by Tom Kaeckenhoff, Miranda Murray, Mark Potter).

(source: Reuters)