Daimler to sell EADS share to German bank KfW
An agreement has been put in place that will see a German state-run bank take a 7.5 per cent share in the European Aeronautic Defence and Space Company.
German state-controlled development bank KfW is set to conclude an agreement for a 7.5 per cent stake in European Aeronautic Defence and Space Company (EADS).
The former will be acquiring the share from Daimler - which had revenue in 2010 of €97,761 million (£83,689 million) - for €1.2 billion.
It is expected the deal - which may have been sealed after lengthy business negotiations - will be completed in 2012.
Bodo Uebber, member of the board of management of Daimler AG, stated that because of the "strategic importance" of EADS it is better that the German-Franco balance is maintained.
He added by selling its shares, Daimler is ensuring "one of the decisive factors for the success of EADS is maintained and an equivalent shareholder structure between the two sides is achieved".
The decision comes ten years after Daimler played a co-founding role in EADS, which has gone on to become a market leader in terms of aviation.
Posted by Ron Maverick
Source: Daimler pres release, November 10th