Daimler Sells 75 Stake in EADS

Daimler Sells 7.5% Stake in EADS

On Wednesday, EADS unveiled a deal to restructure shareholdings that was aimed at reducing the role of France and Germany in the running of the company, while preserving their strategic interests.

FRANKFURT -- Daimler AG ( IW 1000/18) said Thursday it has halved its stake in the European Aeronautic Defence and Space Company (EADS NV (IW1000/59), as planned, and pocketed 1.66 billion euros (US$2.2 billion) in proceeds.

"Daimler today sold 61.1 million shares in EADS ... The price per share was set at 27.23 euros, which corresponds to the EADS closing price in Paris on Wednesday," the German group said.

The deal cuts in half Daimler's stake in EADS to 7.5% and the buyers included the German state-owned investment bank KfW, which purchased a stake of 2.76% and the Dedalus investor consortium, which acquired 1.9%, the statement said.

"The demand from institutional investors was very strong. The book was multiple times oversubscribed," it said.

Daimler finance chief Bodo Uebber said the proceeds would be invested in "the global growth of our divisions, our products and the extension of our technological leadership," without providing any further details.

On Wednesday, EADS unveiled a deal to restructure shareholdings that was aimed at reducing the role of France and Germany in the running of the company, while preserving their strategic interests.

Copyright Agence France-Presse, 2012

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