February 28, 2020 / 8:31 AM / in a month

Thyssenkrupp shares rise on elevator deal

FILE PHOTO: A model of the MULTI elevator pictured inside Thyssenkrupp's elevator test tower in Rottweil, Germany, January 21, 2020. REUTERS/Michaela Rehle/File Photo

BERLIN (Reuters) - Shares in German industrial conglomerate Thyssenkrupp (TKAG.DE) rose as much as 4% on Friday after the company announced it will sell its elevators division for 17.2 billion euros (£14.4 billion), beating even the most optimistic price estimates.

Thyssenkrupp’s stocks initially were a rare bright spot in a market that was deep in the red, dragged down by the effects of the coronavirus outbreak on the global economy.

The shares later turned negative and were down 3.4% at 0815 GMT.

German blue chip index DAX .GDAXI was down 3.7%, while the midcap index MDAX .MDAXI, which Thyssenkrupp is part of, declined 3.4%.

Thyssenkrupp announced on Thursday it will sell its elevators division to a consortium of Advent, Cinven and Germany’s RAG foundation in what could be the world’s largest buyout this year.

The bidding group prevailed against a rival consortium comprising Blackstone (BX.N), Carlyle (CG.O) and the Canada Pension Plan Investment Board, which sources said submitted a lower offer.

Reporting by Thomas Seythal; editing by David Evans

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