(Bloomberg) -- Fresenius SE is exploring steps to relinquish control of its dialysis subsidiary after Elliott Investment Management put pressure on the German healthcare company to simplify its business.

Fresenius SE Chief Executive Officer Michael Sen is discussing a move to deconsolidate Fresenius Medical Care AG with its dominant shareholder, the Else Kroener-Fresenius Stiftung, which is in favor of the plan, according to a statement Thursday.

The plan is designed to reduce the complexity of Fresenius’s sprawling health-care businesses and stemmed from the “top-to-bottom portfolio review” that Sen began after taking over as CEO of Fresenius in October, the company said.

Fresenius SE shares rose as much as 6.8% on the news, while Fresenius Medical Care fell as much as 4.3%. German publication WirtschaftsWoche first reported the plans earlier Thursday afternoon. 

Fresenius SE said it’s still analyzing the stake sale and key parties have yet to make a decision on the matter. 

In October, Bloomberg reported that shareholder activist firm Elliott Investment Management had taken a stake in Fresenius SE, seeking steps to untangle the sprawling health-care company. Elliott also disclosed a short position in Fresenius Medical, possibly indicating a negative view or an effort to partially hedge its exposure to the parent company.

Fresenius SE owns a 32% stake in the Fresenius Medical, which operates primarily in the US. Both companies are based in Bad Homburg.

Read more: Fresenius Medical Clouds Turnaround Picture With CEO Change

In December, Fresenius Medical replaced CEO Carla Kriwet only two months into her tenure, raising concern about the company’s commitment to a turnaround. The repeated shakeup in the top ranks of Fresenius Medical follows several years of struggle at the company, which faced surging costs during the pandemic in efforts to keep staff and dialysis patients safe.

(Updates with shares in fifth paragraph)

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