Tags: EU | Germany | Daimler | EADS

Daimler to Keep Stake in Defense Contractor EADS

Friday, 19 Mar 2010 09:57 AM

Germany's Daimler AG said Friday it doesn't plan to exercise an option to sell its sizable stake in aerospace and defense contractor EADS N.V.

Daimler, based in Stuttgart, is better known for cars and trucks, but owns 22.5 percent of the voting rights and 15 percent of the equity in European Aeronautic Defence & Space Co., the parent company of aircraft manufacturer Airbus.

The announcement came amid speculation it was considering selling some of its ownership in EADS, which has been troubled by delays and cost overruns on its A400M military transporter project.

Daimler said that, by maintaining its investment, the balance of voting rights between German and French shareholders remained unchanged.

Daimler said it would not exercise an option to change the structure of its stake which has been placed in another company that includes investors Deutsche Bank AG, Allianz SE and Credit Suisse Group.

A banker familiar with the situation said that investor arrangement was not likely to change.

EADS is owned by a number of shareholders including the French government, French conglomerate Lagardere SA and Spanish holding company SEPI.

The German government welcomed the fact that the structure would remain unchanged.

"Particularly in the current phase, stability is an important signal for Germany as an aerospace location," it said in a statement.

Shares of Daimler were up 0.2 percent percent to euro34.70 ($47.19) while shares of EADS were up 1.6 percent at euro14.91 in European afternoon trading.

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Germany's Daimler AG said Friday it doesn't plan to exercise an option to sell its sizable stake in aerospace and defense contractor EADS N.V.Daimler, based in Stuttgart, is better known for cars and trucks, but owns 22.5 percent of the voting rights and 15 percent of the...
EU,Germany,Daimler,EADS
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2010-57-19
Friday, 19 Mar 2010 09:57 AM
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