FRANKFURT/DUESSELDORF, Germany (Reuters) - Thyssenkrupp (DE:TKAG) shares hit a record low on Friday, prompting its finance chief to come out and defend the ailing conglomerate which must convince investors that it can earn cash following the sale of its elevator division.
Shares in the group fell as much as 7.3% to 6.732 euros per share. Analysts and investors have urged the firm to quickly develop a new strategy after selling its most profitable unit for 17.2 billion euros ($19.5 billion) last week.
The disposal has left Thyssenkrupp with a huge cash pile but no equity story for the rest of the group, which makes everything from submarines and steel to car parts and fertilizer plants. [nL5N2AR8WM]
Shares have fallen nearly a quarter since the sale was announced, causing Chief Financial Officer Johannes Dietsch to address staff in an internal note, confirming the group would give more details on how funds would be used in May.
"This timetable is obviously insufficient for some. That adds to uncertainty among investors which in turn causes shares to fall," he said in the note, which was obtained by Reuters.
"I do hope, however, that capital markets will increasingly reward how we intend to reposition Thyssenkrupp."