Ulrich Lehner, the chairman of Thyssenkrupp has resigned, citing pressure from activist shareholders, days after the German industrial giant announced the merger of its steel business with India's Tata Steel to emerge as Europe's second-biggest steelmaker.
Lehner's resignation comes 12 days after Thyssenkrupp's CEO Heinrich Hiesinger who had suprisingly quit the company after Tata Steel announced its 50-50 joint venture with the German giant, creating Europe's second-largest steel company after Lakshmi Mittal's ArcelorMittal.
Lehner, 72, had publicly backed Hiesinger, saying that activist shareholders of Thyssenkrupp had inflicted "psychological terrorism" on the former CEO.
In a statement last night, Thyssenkrupp said Lehner informed the Executive Board of the company that he will resign from his office as Chairman of the Supervisory Board of thyssenkrupp AG as of July 31, and that he will withdraw from the Supervisory Board.
"Today I have decided to resign from my office as Chairman of the Supervisory Board of thyssenkrupp," Lehner said.
"The confidence of the major shareholders and a joint understanding within the Supervisory Board on the strategic direction of thyssenkrupp were the basis for my work and a pre-requisite for my promise to Berthold Beitz to successfully further develop the company in the interest of customers, employees and shareholders. This is now no longer given," he said.
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Beitz was a legendary German industrialist and head of the Krupp steel conglomerate. He died in 2013.
"I take this step consciously to enable a fundamental discussion with our shareholders on the future of thyssenkrupp. My decision may contribute to creating the necessary awareness with all concerned parties that a break-up of the company and the related loss of many jobs is not an option neither in the interest of the founder, nor in the interest of the country," Lehner added.
The Supervisory Board will decide on the succession of Lehner as Chairman of the Supervisory Board shortly, the company statement said.
Reacting to Lehner's resignation, Guido Kerkhoff, Chairman of the Executive Board of thyssenkrupp AG said, the company regrets his decision and thanked him for the trustful collaboration.
"With his calm and reliable leadership of the Supervisory Board he reconciled the interests of shareholders and employees at all times.
"He always supported the Board with his valuable entrepreneurial advice also in challenging times and thereby made the implementation of the Strategic Way Forward and the steel joint venture with Tata possible," Kerkhoff said.
Lehner has been a member of the Supervisory Board of thyssenkrupp AG since 2008, initially as a delegated member of the Supervisory Board for the Alfried Krupp von Bohlen und Halbach-Stiftung.
After the resignation of Gerhard Cromme, he took over as Chairman of the Supervisory Board in a difficult time for the company at the request of Berthold Beitz.
Thyssenkrupp has been under pressure from activist investors such as investment firm Cevian, an 18 per cent shareholder, and business daily Handelsblatt reported Lehner was one of two advisory board members to have voted against the Tata merger, according to AFP news agency.
According to some media reports, the deal with the Tata Steel did not satisfy all of the German firm's shareholders, some of whom believed Thyssenkrupp had got the poor end of the deal.
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