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Quick-fix share sale hits ThyssenKrupp

Quick-fix share sale hits ThyssenKrupp
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ThyssenKrupp’s shares fell on Thursday after it said it will raise as much as 1.7 billion euros by selling shares.

The move is seen as a quick fix to cut debt after the recent collapse of the sale of its civilian shipyard.

Germany’s biggest steelmaker is to sell nearly 50 million shares: That is almost 10 percent of its capital and equivalent to all of the shares it has bought back in the last five years.

ThyssenKrupp’s plan to sell the yacht and maintenance part of Blohm + Voss to Abu Dhabi MAR fell apart last week.

Its net debt has swelled to 6.5 billion euros, up by 2.7 billion euros since last September.

That comes from ambitious plans to expand in the Americas, as it builds mammoth plants in Brazil and the United States.

Higher raw material costs and inventory levels due to the recovery in overall demand have also lifted funding needs.

In May ThyssenKrupp unveiled plans for a major revamp that would hive off its stainless steel unit, Europe’s largest producer, as part of a 10 billion euro divestment plan to help pay debt.

At the same time it is trying to upgrade its remaining engineering business, with products ranging from elevators and escalators to manufacturing plant equipment.