By Jan Hromadko and Hendrik Varnholt
The single largest shareholder in ThyssenKrupp AG (TKA.XE) said Tuesday that it turned down a chance buy more stock in the German industrial giant, a decision that shrinks its stake and effectively strips it of its veto right.
The Alfried Krupp von Bohlen und Halbach Foundation owned around 25.3% in ThyssenKrupp before the steelmaker carried out a capital increase on Monday.
Several people familiar with the share placement had told The Wall Street Journal that failure to participate would dilute the foundation's stake to around 23%.
That would mean the foundation has lost its blocking minority, which effectively equates to a veto right in the company's supervisory board on important corporate decisions.
Meanwhile, Swedish activist shareholder Cevian Capital, which increased its stake in ThyssenKrupp to around 6.1% over the past few months, has invested more money in new shares, the people said.
Cevian purchased a significant part of the shares on offer, but less than half of the entire placement volume, one of the people said.
ThyssenKrupp Tuesday said it raised 882.3 million ($1.2 billion) in gross proceeds by issuing 51.5 million new shares to institutional investors. The company plans to use the proceeds to reduce debt and bolster its equity base.
Madeleine Nissen contributed to this article
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