BONN, November 23: The planned merger of German industrial groups, Thyssen and Krupp, is on the brink of breakdown over the question of who would head the merged group, the weekly news magazine Focus reported on Saturday. Powerful Krupp shareholders continue to back Gerhard Cromme, chairman of Fried. Krupp AG Hoesch Krupp, while the Thyssen camp wants to install Thyssen AG chairman Dieter Vogel.

Thyssen's supervisory board meeting is seen as the deadline for resolving the deadlock. Spokesmen for the two companies declined to comment on the report, except to say that they were working together constructively to make the merger a success, and that negotiations continued. Thyssen supervisory board chairman Heinz Kriwet said earlier this week that Thyssen would consider a takeover of Krupp if merger talks failed. Earlier reports said key Krupp shareholders were intent on maintaining at least a "blocking minority" of 25 percent plus one share in the merged company.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.