Thyssenkrupp AG will drop out of Germany's benchmark stock index this month...
Hit by four profit warnings and two botched restructuring attempts, shares in Thyssenkrupp have fallen 42% in the past year, while the DAX has kept steady. The stock will become a constituent of Germany’s midcap MDAX index .MDAXI.The decision by stock market operator Deutsche Boerse adds to the long list of problems at Thyssenkrupp, which last month was downgraded by ratings agencies S&P and Moody’s in light of a cooling global economy.
“But they continue to be very confident that we can refinance in the bond and credit market and that of course depends on the rating and not on our index membership,” Finance Chief Johannes Dietsch said in a podcast obtained by Reuters. For Chief Executive Guido Kerkhoff, exclusion from the DAX means another defeat in his efforts to overhaul the sprawling group by selling all or part of its prized elevators unit.
“What’s important is that we’re now setting up the group in a new and more profitable way in order to win back investor trust,” he said in a statement.The index departure means exchange-traded funds tracking the DAX will have to sell the stock. It will also no longer be an investment option for actively managed mutual funds which are restricted to blue chips as defined by the DAX.
Thyssen, which merged with Krupp two decades ago, has been a member of the DAX since its inception in 1988. Last year, founding member Commerzbank (
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