business, abandons split@
* Abandons restructuring involving cross-shareholding - sources
* Joint venture with Tata Steel expected to fail - sources
* Thyssenkrupp declines comment (Adds Tata Steel joint venture expected to fail)
FRANKFURT, May 10 (Reuters) - Thyssenkrupp is considering a carve-out or listing of its elevators business after abandoning plans to split itself up with a cross-shareholding structure, three sources familiar with the matter told Reuters on Friday.
Chief Executive Guido Kerkhoff is abandoning the proposal to split Thyssenkrupp into two because its low share price has made a cross-shareholding structure unworkable, these sources said.
Thyssenkrupp is instead considering a new approach, involving a holding structure and a carve-out or partial listing of its elevators division, they added.
Thyssenkrupp unveiled plans last September to create two divisions: Thyssenkrupp Industrials, spanning its elevators, car parts and plant engineering businesses, and Thyssenkrupp Materials, which included materials trading and shipbuilding.
Under Kerkhoff's original blueprint, Thyssenkrupp Materials was due to hold a 30 percent stake in Thyssenkrupp Industrials. But after two profit warnings, Thyssenkrupps share price is too low to make this deal work, leaving Kerkhoffs scrambling for a Plan B, these people said.
Thyssenkrupp shares have fallen by 47 percent over the past 12 months, valuing the business at $7.8 billion. That makes it the smallest constituent of Germany's 30-share DAX index, even after a 7 percent bounce on Friday's news.
Separately, Thyssenkrupp is expecting a separate joint venture to combine its European Steel business with Tata Steel to be abandoned after failing to win antitrust approval, one of the sources said.
Under the old restructuring plans, Thyssenkrupp Materials would have held a 50 percent stake in the planned steel JV with Tata Steel. The European Commission will review remedy proposals by May 13. (Reporting by Edward Taylor, Chris Steitz, Tom Kaeckenhoff Editing by Georgina Prodhan and Douglas Busvine)