By Christoph Steitz and Tom Käckenhoff

ESSEN, Germany (Reuters) – Thyssenkrupp has begun due diligence with potential bidders for its plant division as the German conglomerate accelerates a radical overhaul to sell or turn around ailing business units in the next two years, a top executive told Reuters.

In his first interview, Volkmar Dinstuhl, who oversees the divestment of non-core assets, said the company has opened the books to buyers of its plant-building units and received expressions of interest for its stainless steel division.

Thyssenkrupp

is also open to considering offers for its automotive and remaining industrial assets, said Dinstuhl, who heads up the group’s Multi-Tracks division, which houses businesses Thyssenkrupp no longer wants to own.

“Our goal is to find a solution for all our businesses within the next two years,” said Dinstuhl, the first time Thyssenkrupp has outlined a timeline for restructuring.

The Essen, Germany-based company, which makes submarines, warships, steel and car parts, as well as equipment for cement factories, construction and fertiliser plants, is struggling to define what its core business is.

Dinstuhl, an international chess master, is taking an opportunistic approach to reshaping the company’s portfolio after selling the company’s elevators unit for 17.2 billion euros ($20.2 bln) earlier this year.

That disposal gives Thyssenkrupp the financial strength to stem potential writedowns on other assets it has up for sale, allowing it to pursue a deeper restructuring than has previously been possible.

Dinstuhl said that Multi-Tracks, which accounts for about 6 billion euros in sales and was responsible for 400 million euros of negative cash flow in the 2018/19 fiscal year, will seek to sell, shut down or find partners for the 10 units it comprises.

“We’re basically an internal private equity fund,” he said.

Jennifer Cooper, who has held various M&A positions at Thyssenkrupp

Electronic trading giant Citadel Securities will bolster its already huge presence at the New York Stock Exchange by buying the NYSE market-making business of smaller rival IMC Financial Markets, the companies said.

The deal would solidify Citadel Securities’ status as the largest designated market maker at the exchange. DMM firms are tasked with ensuring orderly trading of stocks listed on the NYSE. They gain certain trading privileges in return, and their blue-jacketed traders occupy a prominent position in the center of the exchange’s historic trading floor.

The deal is subject to approval by the NYSE. If it is completed, Citadel Securities would oversee trading for more than half of the securities listed on the exchange. It would also reduce the number of DMM firms at the Big Board to three from four, potentially raising concerns that the DMM business is becoming overly concentrated.

IMC, a global trading firm based in Amsterdam, runs the third-largest DMM business at the NYSE. Earlier this year, it oversaw trading in 18% of NYSE-listed stocks, while Citadel Securities had a 44% share, according to a NYSE spreadsheet viewed by The Wall Street Journal. The spreadsheet listed DMM assignments for more than 3,000 securities, including closed-end funds and preferred shares as well as the common stock of NYSE-listed companies.

An expanded version of this report appears at WSJ.com.

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a man looking at the camera: Reuters


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Reuters

  • IBM surged on Thursday after it announced plans to spin off its legacy managed-infrastructure business so it can focus on building up its cloud division.
  • The spinoff is expected to be tax-free for IBM shareholders and be completed by the end of 2021, the company said.
  • CEO Arvind Krishna said the spinoff would allow IBM to be “laser-focused on the $1 trillion hybrid cloud opportunity.”
  • IBM also released preliminary third-quarter earnings results.
  • Visit Business Insider’s homepage for more stories.

IBM is shedding its legacy business to focus on growing its cloud unit, it said on Thursday.

IBM said it would spin off its managed-infrastructure business as a new publicly traded company in a tax-free deal for IBM shareholders. The spinoff is expected to be completed by the end of 2021, it said.

CEO Arvind Krishna said that spinning off the company’s legacy networking business would allow it to be “laser-focused on the $1 trillion hybrid cloud opportunity.”

The deal follows IBM’s acquisition of RedHat for $34 billion in 2019 to bolster its cloud offering.

“Now is the right time to create two market-leading companies focused on what they do best,” Krishna said.

Video: IBM CEO and executive chair on spinning off IT infrastructure unit (CNBC)

IBM CEO and executive chair on spinning off IT infrastructure unit

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IBM said that as it focuses on growing its cloud business, it will have “an enhanced financial profile with a clear trajectory for improved revenue and profit growth.”

News of the spinoff was well received by investors, with shares of IBM surging as much

FILE PHOTO: A man stands near an IBM logo at the Mobile World Congress in Barcelona, Spain, February 25, 2019.    REUTERS/Sergio Perez
FILE PHOTO: Man stands near an IBM logo at the Mobile World Congress in Barcelona


  • IBM surged on Thursday after it announced plans to spin off its legacy managed infrastructure business so it can solely focus on building up its cloud division.
  • The spinoff is expected to be tax-free for IBM shareholders and will be completed by the end of 2021, the company said.
  • “IBM is laser-focused on the $1 trillion hybrid cloud opportunity,” IBM CEO Arvind Krishna said.
  • IBM also released preliminary third quarter earnings results.
  • Visit Business Insider’s homepage for more stories.

IBM is shedding its legacy business to focus on growing its cloud unit, according to a release on Thursday.

IBM will spin off its managed infrastructure business as a new publicly traded company in a tax-free deal for IBM shareholders. The spinoff is expected to be completed by the end of 2021.

The spinoff of IBM’s legacy networking business will allow the company to become “laser-focused” on the $1 trillion hybrid cloud opportunity, IBM CEO Arvind Krishna said.

The deal follows IBM’s continued transition to the cloud business, which was heightened in 2019 after it acquired RedHat for $34 billion to help bolster its cloud offering.

“Now is the right time to create two market-leading companies focused on what they do best,” Krishna explained.

Read More: A $2.5 billion investment chief highlights the stock-market sectors poised to benefit the most if stimulus is passed after the election – and says Trump ending negotiations doesn’t threaten the economic recovery

With IBM able to focus on growing its cloud business, the company said it will have “an enhanced financial profile with a clear trajectory for improved revenue and profit growth,” the company said.

News of the IBM development was well received by investors, with shares

VIENNA (Reuters) – Lufthansa

unit Swiss International Air Lines plans to cut roughly 1,000 jobs over the next two years through voluntary measures rather than layoffs, its outgoing Chief Executive Thomas Kluehr said in remarks published on Saturday.

The Swiss government has granted the airline more than 1 billion euros ($1.17 billion) in loan guarantees to help it cope with the collapse in air travel due to the pandemic. Like many of its peers it decided to shrink its staff and fleet.

“We are initially relying on three socially acceptable measures: a hiring freeze, part-time models with salary reductions, and early retirement,” Kluehr told newspaper Schweiz am Wochenende, adding that based on staff fluctuations in recent years it should be possible to cut 1,000 jobs without layoffs.

Swiss and Edelweiss Air, a much smaller sister airline, have 10,475 employees, according to the Lufthansa Group’s second-quarter financial report https://investor-relations.lufthansagroup.com/fileadmin/downloads/en/financial-reports/interims-reports/LH-QR-2020-2-e.pdf. Swiss has roughly 9,500 staff, Schweiz am Wochenende said.

Kluehr, whose successor has yet to be announced, said the airline industry’s current crisis should last three to five years. In terms of job cuts much would depend on how quickly the market recovers, he added.

“If, in the medium to long term, we expect Swiss’s business to shrink by 20% – and that is what we expect at the moment – then the 1,000 jobs would suffice, yes,” said Kluehr.

“If we see in the first quarter, looking towards the summer, that the situation is not improving, particularly in long-haul, then the 1,000 jobs will not be enough.”

(Reporting by Francois Murphy, editing by Louise Heavens)

Copyright 2020 Thomson Reuters.

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