Union is open to PE investment in warship division
IG Metall wants to protect jobs, workers39; rights
Does not see CEO issue slowing process
Thyssenkrupp shares rise after comments

FRANKFURTDUESSELDORF, May 5 Reuters Influential labour representatives are open to private equity players taking a stake in Thyssenkrupp39;s warship division Marine Systems TKMS and will set up a committee in the coming days to join the negotiation process.

We are not generally opposing private equity taking a stake in TKMS, said Daniel Friedrich, who leads the division at IG Metall, Germany39;s most powerful union, that represents workers in coastal areas.

Thyssenkrupp is reviewing strategic options for the unit, which builds submarines and frigates, and held early talks with private equity firms KKR, Carlyle and CVC CVC.UL, according to two people familiar with the matter.

Thyssenkrupp shares rose as much as 3 to a session high following the comments.

Apart from a minority stake sale, TKMS could also be spun off, its chief executive and Thyssenkrupp board member Oliver Burkhard said last month.

This is the first time the union has publicly backed private equity becoming a shareholder in TKMS. Labour support is vital to any major transaction at Thyssenkrupp, where IG Metall has traditionally wielded substantial influence.

There have been positive experiences with PE players, Friedrich told Reuters, singling out KKR and the investor39;s past engagements at forklift truck maker…