Latest Car News From DIGIADS

Latest Car News

New Car Review Areas

General Car Topics

DaimlerChrysler to Reduce 7.5% of Its Stake in EADS


April 2006
 Filed under: DAIMLERCHRYSLER CORPORATE Car News | DAIMLERCHRYSLER CORPORATE Headlines
STUTTGART, Germany, April 4 /PRNewswire-FirstCall/ -- After authorization by the Supervisory Board of DaimlerChrysler, the Board of Management today has taken all appropriate actions for hedging 7.5% out of its 30% stake in the European Aeronautic Defence and Space Company (EADS).
With this step DaimlerChrysler will further focus on its core automotive business. Today's market value of the 7.5% stake amounts to approximately euro 2.0 billion. There will be no impact on the net income in 2006. As the settlement of the transaction is intended to take place between January and April 2007, the impact of the transaction on net income in the magnitude of around euro 1 billion will occur in 2007.

Today, DaimlerChrysler and international investment banks have entered into a forward sales agreement on EADS shares. The DaimlerChrysler Group will be lending the shares to the banks which then will place the shares in the market.

This transaction has been prepared in close cooperation with the French Lagardere SCA which also intends to reduce its indirect 15% stake in EADS to 7.5%. On the basis of the existing contractual relationships the step has been coordinated with all major shareholders of EADS.

DaimlerChrysler and Lagardere SCA are determined to further support the continued success of EADS and remain core shareholders. The sustained increase of the EADS share price strongly underscores the substantial global investor interest and high demand for a participation in EADS. Both DaimlerChrysler and Lagardere SCA respond to this demand by substantially increasing the free float of EADS. This will broaden the shareholder basis of EADS and enhance its access to and position in the international capital markets. Thus it enables the company to enter into a new chapter of global successful growth as a logical next step in its development.

Through these transactions, EADS' balanced Corporate Governance among the core shareholders remains unchanged.


Source: DaimlerChrysler AG

Latest DAIMLERCHRYSLER CORPORATE Headlines

Latest Car News

All images courtesy of and copyright their respective manufacturers, unless otherwise indicated. They may not be reproduced or retransmitted in any way without the express written permission of their respective owners. All trademarks are the property of their respective owners. Model news and specifications are presented as provided by manufacturer, and do not necessarily reflect the opinions of DIGIADS. No warranty is made by DIGIADS with respect to the accuracy or timeliness of the information contained herein.
Copyright © 2000-2025 DIGIADS Australia All Rights Reserved. Contact Us
Designated trademarks and brands are the property of their respective owners. Use of this Web site constitutes acceptance of the DIGIADS Privacy Policy and User Agreement. 		Loading...