UNDER US PRESSURES, THYSSENKRUPP DOWGRADE IRAN’S PARTICIPATION
Frankfurt 21 May (IPS) The Islamic Republic of Iran suffered another humiliation at the hand of the Americans after the Financial Times reported yesterday that ThyssenKrupp of Germany had bought back a stake held by state-controlled Iranian investors following a threat from the US defence department to exclude the German conglomerate from some government contracts.
ThyssenKrupp said it paid about €406m, or €24.02 per share, to buy back a 2.3 per cent stake from the Iran Foreign Investment Company. Iran's stake in the group is cut to 4.5 per cent from 7.8 per cent.
So far, there was no comment from the Iranian government. Contacted by telephone, a female voice at the Iranian Foreign Affairs Ministry’s Information Department who refused to be identified said the Spokesman, Mr. Hamid Reza Asefi could not speak because he is praying. On orders from the authorities, main Iranian newspapers also ignored the news.
The move comes ahead of a visit to the US by Wolfgang Clement, German economics minister, designed to improve relations strained by the countries' stances over the Iraq war.
"The Americans approached ThyssenKrupp earlier this year and asked them to reduce the stake [of Iran] to below 5 per cent or otherwise put them on their blacklist," said a person familiar with the group's investor policy.
With its shares under five per cent, the Islamic Republic can no more be present at the company’s Board of directors.
He said ThyssenKrupp feared losing business elsewhere in the US once it was on the defence department's blacklist.
About 20 per cent of ThyssenKrupp's annual €37bn sales go to the US, the bulk of which are automotive parts sold to the big carmakers.
"If you are on the department of defence's blacklist you can be certain to feel repercussions elsewhere in your business as well," said the person.
"As a result [of the buyback] we will avoid threatened restrictions resulting from US laws relating to the unrestricted market access of ThyssenKrupp in the US and severe economic losses in our US business".
Alongside of the former regime of Iraq and North Korea, Iran is on the American list of "Evil States".
The "general military law" approved by the US in April forbids companies winning defence department contracts if foreign governments "that have provided support for acts of international terrorism" own big parts.
The Pentagon was not available for comment.
In order to help the financially troubled Krupp, one of the world’s mst advanced industrial conglomerate, the former Iranian regime of Shah Mohammad Reza Pahlavi bought 25 per cent of the company’s shares in the mid-1970s, but the Islamic Republic sold most of its shares to under 8 per cent after Krupp merged with Thyssen, to become ThyssenKrupp, which trades at €8.88.
ThyssenKrupp is the world's largest maker of stainless steel. It is also one of the world's largest producers of elevators and automotive parts, ships and submarines and plant engineering, materials and service activities. ENDS THYSSENKRUPP DOWNGRADES IRAN 21503