Daimler seeks to sell remaining Chrysler stake

Daimler looking to divest itself of its 19.9 percent share of Chrysler

By Alex Ricciuti
January 21, 2009 12:01 AM
Filed Under: American, Chrysler, Corporate/Financial, German, Industry, Mercedes-Benz

Daimler AG is looking to divest itself of its stake in Chrysler.

After selling off control of Chrysler to Cerberus Capital Management in 2007, Daimler retained a 19.9 percent stake in the US automaker. But now, the company wants to sell off its remaining share of the troubled automaker.

"We are still trying to divest our 19.9 percent stake in Chrysler," said a Daimler spokesperson.

On Tuesday, Chrysler and Fiat announced an alliance in which Fiat would take a 35 percent stake in Chrysler in return for investments in retooling a Chrysler plant in the US to produce Fiat models for the US market. It is not clear if those models will be badged as Fiats or will come branded as Chryslers.

According to details of the deal, Fiat may receive its 35 percent stake by the middle of the year. The deal also provides the option for Fiat to increase its stake to 55 percent at a later date.

The Daimler spokesperson commented on the Fiat-Chrysler alliance: "We welcome any initiative that serves to stabilize the situation at Chrysler and preserve jobs at the company."

 

Source: Reuters

Comments

sub39h
January 21, 2009 1:48 AM
i still wanna know what Mercedes were thinking when they bought Chrysler... what possessed them to do that?

catchmyshadow
January 21, 2009 5:55 AM
CEO Schrempp thought he could own the world. He should have been sent to court for burning billions back then. instead he got millions when he left. that´s capitalism nowadays.

WildMaverick1200
January 21, 2009 6:39 AM
I'm willing to pay as much as 2 dollars for that stake. Actually, that's too much money......

alex_w115
January 21, 2009 8:40 AM
Schrempp was jealous of Piech, taking over everything he could get his hands on at that time.

benz_man
January 22, 2009 8:54 PM
I can only imagine how hard the execs at Daimler are scrambling to dump the rest of their shares. It must be humorous to watch... Like sailors throwing supplies from an overladen ship! lol

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