Wednesday, July 31, 2013
Head of Krupp Foundation dies at 99
FRANKFURT (Reuters) - Berthold Beitz, the 99-year-old conservative head of the Krupp Foundation, died on Tuesday, potentially opening the way for deeper change at Germany's largest steelmaker ThyssenKrupp, already in the midst of a major strategic shift.
The death of Beitz, famous in Germany for rescuing Jews from the SS during World War II, was confirmed in a statement by on Wednesday and prompted tributes from Chancellor Angela Merkel and Jewish leaders.
World Jewish Congress President Ronald S. Lauder called him "one of the great Germans of the past century" for his actions saving hundreds at the oil refinery he ran in the Boryslav region, now part of Ukraine, between 1941 and 1944.
"For many Jews he was a beacon of hope in a sea of despair," Lauder said. "He was a hero of the Holocaust at a time when it was a crime to be a humane person. He will never be forgotten for his tremendous acts of kindness."
The Alfried Krupp von Bohlen und Halbach Foundation, which Beitz headed, has long been seen as a barrier to a takeover or breakup of ThyssenKrupp, which is struggling to swallow billions in losses on its U.S. operation.
Beitz controlled board appointments and pulled strings in the background of an operation which ranges from steelmaking to elevators, submarines and industrial equipment.
For years he had blocked any dilution of the foundation's roughly 25 percent stake which allows it to block capital changes.
But earlier this year, Beitz appeared to signal a change in tone.
"I will not stand in the way of any steps which are for the good of the company," he told German paper Suddeutsche Zeitung, which many took to mean the foundation would allow a capital increase.
"Chief Executive Heinrich Hiesinger has become much more autonomous recently and for example cut the dividend to safeguard Thyssen's cash, but I expect that that management may be able to act even more freely now," a steel analyst said.
The foundation did not immediately announce a replacement for Beitz, a powerful businessman and former insurance executive who has headed the body since 1968.
The Krupp Foundation is an unconventional shareholder. Rather than being focused on maximizing profits, it is a philanthropic body tasked with funding social projects in the areas of education, science, healthcare, sports and culture.
Beitz played a key role in persuading the Krupp dynasty to hand over operational control of the company to the Krupp foundation and in 1998, helped engineer the merger between Krupp and Thyssen to form today's ThyssenKrupp.
"Germany has lost one of its most respected and successful corporate leaders who influenced Germany in important areas," Merkel said in a statement.
"What should in particular be remembered is his courageous and exemplary efforts to protect Jewish workers during World War Two and his early efforts to build bridges into Eastern Europe."
(Reporting by Arno Schuetze and Edward Taylor; editing by Patrick Graham)
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