Increasing pressure on the Thyssenkrupp AG's management to deliver more favourable terms, Elliott Management Corp has urged the company to negotiate a better steel joint venture with Tata Steel, reported Bloomberg.

The American investment management firm Elliot in a letter to the Thyssenkrupp said that a tie up with the Tata will not be favourable for the German company given the weakness in Tata’s recent performance, the report said.

According to Elliot, if the initial deal terms are maintained, then it would mean a shift of about $2.2 billion less for Thyssenkrupp, added the report.

Elliott has also highlighted the divergence in performance in Tata and Thyssenkrupp’s steel businesses in the letter, the report said.

The development would make it harder for the German firm to go forward with the deal using the current terms, Bloomberg said.

Thyssenkrupp’s second-largest shareholder Cevian Capital also has similar views on the joint venture with Tata, said the report, adding that even labour representatives of the firm has voiced concern highlighting the drop in profits at Tata’s European steel business and rising earnings at Thyssenkrupp’s business.