(Adds CEO comments)
FRANKFURT/DUESSELDORF, Feb 3 (Reuters) - A top-20
Thyssenkrupp shareholder called on Friday for the
rapid disposal of the German group's warship and submarine
business, saying its risks outweighed any potential benefits.
Thyssenkrupp is considering what it calls a standalone
solution for Thyssenkrupp Marine Systems (TKMS), including
partnerships, joint ventures or other forms of consolidation.
"We demand the immediate sale of all defence activities. The
reputational and compliance risk of this business segment stands
in no relation to the profit generated by the division," Ingo
Speich, head of sustainability and corporate governance at Deka
Investment, said.
Deka holds 0.45% of Thyssenkrupp shares, according to
Refinitiv Eikon data, making it the German industrial
conglomerate's 12th-biggest investor.
Speich did not elaborate on what the reputational and
compliance risks could be.
Thyssenkrupp Chief Executive Martina Merz played down the
need for swift action at the group's annual general meeting,
saying TKMS, which has around 6,900 staff, was in a strong
position.
"We will not be driven to second-best solutions," Merz said.
"At the same time, we are in talks with the Federal
Government, as one of our most important customers, to find out
if and when the political conditions for a standalone solution
can be created," she added.
Thyssenkrupp has said it is in favour of a consolidation of
the European defence sector, which could gain momentum through
Germany's decision to beef up its armed forces via a 100
billion-euro ($109 billion) special budget.
"Even a partial sale would be a step in the right
direction," Speich told Friday's AGM.
TKMS posted sales of 1.8 billion euros in the last fiscal
year that ended in September, while adjusted operating profit
was 32 million euros.
($1 = 0.9153 euros)
(Reporting by Christoph Steitz in Frankfurt and Tom Kaeckenhoff
in Duesseldorf; Editing by Matthew Lewis, Matthias Williams and
Alexander Smith)
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