Thyssenkrupp narrows field of suitors for elevator unit, IPO possible

Thyssenkrupp has narrowed the field of suitors for its elevator unit to three North American outfits describing their bids as "at a high level", which it said underlined the attractiveness of the business.

"After careful evaluation of an extensive catalogue of criteria, the company has decided to prioritise further negotiations with two consortia of financial investors," the company said in a statement.

The two remaining bidders were a consortia made up of US private equity groups Blackstone and Carlyle together with the Canadian Pension Plan Investment Board, on the one hand, and another including Advent and Cinven on the other.

"The objective is to reach an agreement quickly on a majority or full sale," Thyssenkrupp added.

If no agreement were finally reached, Thyssenkrupp said it could opt instead to float the unit, which would then be feasible starting in the summer.

In parallel, Finland's Kone Oyj announced that it had dropped out of the running, arguing that while a combination of its elevator unit with that of Thyssenkrupp's would have been "strategically compelling" it needed to be on terms that were in the best interest of its shareholders, employees and customers.

As of 1510 GMT, shares of Thyssenkrupp were down by 2.01% at €10.97 and those of Kone by 4.91% to €55.04.