FMC up 12.1, Fresenius shares drop 3
Fresenius to give up strategic control over FMC
Fresenius plans no sale of 32 stake in FMC
Investors say sale is possible eventually
CEO says new legal form offers option to divest

BAD HOMBURG, Germany, Feb 22 Reuters Fresenius Medical Care shares hit their highest level in nearly seven months on Wednesday, welcoming news that FMC parent Fresenius would cede control over the struggling dialysis firm but keep its stake for now as part of a turnaround plan.

Healthcare group Fresenius said late on Tuesday it would give up strategic control over FMC via a planned change of the division39;s legal form, also releasing annual results and an outlook that failed to impress investors.

Fresenius CEO Michael Sen, a former E.ON and Siemens executive who took over the helm in October, wants to simplify the company39;s structure but said he will hang onto the 32 stake Fresenius owns in FMC.

FMC shares rallied 12.1, by far the best performer on Germany39;s bluechip DAX 30 at 1128 GMT, with analysts at Bernstein citing market relief that the parent would not immediately place shares on the open market in a block sale.

Some investors, however, were sceptical the planned untangling will help quickly resolve Fresenius39; poor performance. Its stock was the worst performer on the DAX, down 3, having lost more than 40 since January 2020.

Fresenius aims to exclude FMC, which was hit hard by a high rate of COVID19 deaths among its patients, from…