DaimlerChrysler reaches agreement on EADS stake sale - German govt |
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Wed, 10 Jan 2007 11:07
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FRANKFURT (AFX) - Agreement has finally been reached on the sale of part of DaimlerChrysler AG's stake in European aerospace giant EADS, with a deal to be announced next week or the week after, a German government spokesman told the Frankfurter Allgemeine Zeitung.'A solution has been found. The participants have reached an agreement. The final details are now being worked out,' the spokesman said.Germany is currently represented in EADS through a 22.5 pct share held by German-US auto giant DaimlerChrysler.French interests are controlled by the holding company Sogeade, which holds 15 pct controlled by the French state, and 15 pct is owned by the media and defence group Lagardere, which also plans to sell 7.5 pct, reducing the French stake of 22.5 pct.However, DaimlerChrysler wants to reduce its stake to 15 pct, raising the question of what would happen to the 7.5 pct stake being put up for sale.Berlin insists the stake should remain in German hands to maintain the balance of power.The newspaper said the deal would be based on a complex construction of derivative securities that would run for a number of years.Media reports have said a consortium of financial investors will acquire the stake, including Deutsche Bank, Commerzbank, KfW Kreditanstalt fuer Wiederaufbau, Goldman Sachs and a number of regional public-sector banks, or 'Landesbanken'.newsdesk@afxnews.comafp/amk/wjCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Morgan Stanley, Credit Suisse to join consortium for EADS stake buy - report 