Deutsche Bank sells 2.5 pc of DaimlerChrysler
23 November 2005, FRANKFURT - Deutsche Bank sold Tuesday 2.5 per cent, or 25 million shares, of German-U.S. automotive group DaimlerChrysler to institutional investors.
23 November 2005
FRANKFURT - Deutsche Bank sold Tuesday 2.5 per cent, or 25 million shares, of German-U.S. automotive group DaimlerChrysler to institutional investors.
Frankfurt-based Deutsche Bank, which is Germany's biggest bank, had held 6.9 per cent of the carmaker as of the end of September. The stake had a book value of more than 3 billion euros. It now holds just 4.4 per cent.
After the announcement Tuesday, DaimlerChrysler stock fell 2.1 per cent on the Frankfurt Stock Exchange to 43.15 euros. Deutsche Bank said it collected 43.20 euros per share on the sale and will write a capital gain of 300 million euros from the transaction.
The two companies formerly were the most powerful couple in the web of companies that was sometimes dubbed Germany Inc. The bank held a key stake in the automaker and a bank manager has always chaired the car company's non-executive supervisory board.
The current chairman is Hilmar Kopper, formerly Deutsche Bank's chief executive.
Deutsche Bank is committed to selling off its portfolio of leading German companies. It still holds 2.4 per cent of Europe's biggest insurer, Allianz, and 10 per cent of engineering and gases group Linde.
Subject: German news