KONE, Schindler Reportedly Eyeing thyssenkrupp Elevator

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Welcome to the Elevator World News Podcast. This week’s news podcast is sponsored by elevatorbooks.com: www.elevatorbooks.com KONE, SCHINDLER REPORTEDLY EYEING THYSSENKRUPP ELEVATOR In the wake of thyssenkrupp AG announcing plans to launch its elevator business in an initial public offering (IPO), rather than splitting the company in two, KONE and Schindler are reportedly exploring the viability of a bid, Reuters is among news outlets to report. The source observes thyssenkrupp’s EUR14-billion (US$15.7-billion) elevator division is its most profitable. Citing “people familiar with the matter,” Reuters says it is unclear if such a deal would face “significant antitrust hurdles similar to thyssenkrupp’s failed joint venture with [India’s] Tata Steel” or if KONE could fund an all-cash deal. That is why thyssenkrupp management, they say, prefer an IPO. KONE approached thyssenkrupp about an elevator merger in 2016, and KONE’s top investor Antti Herlin is now working with Bank of America to study options. Schindler is also expected to study options, but a source says antitrust issues would be more likely in that case, since thyssenkrupp and Schindler have greater geographic overlap than thyssenkrupp and KONE. “We’ve been saying for years that consolidation would make sense in our industry, and our thinking has not changed,” a KONE spokeswoman said. Image credit: wikipedia To read the full transcript of today's podcast, visit: elevatorworld.com/news Subscribe to the Podcast: iTune s│Google Play|SoundCloud│Stitcher│TuneIn

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