German state to buy Daimler's shares in EADS: sources

9th November 2011, Comments 0 comments

Germany will take over some of the shares in European aerospace and defence giant EADS held by carmaker Daimler after no private investor could be found, economy ministry sources said Wednesday.

Daimler currently holds a stake of 15 percent and 22 percent of the voting rights in the European Aeronautic Defence and Space Company and is looking to sell initially half of that stake.

The German government had hoped to find a private buyer for the shares -- whose current market value stands at 1.2-1.3 billion euros ($1.6-1.8 billion) -- but is being forced to step in after no-one came forward, the sources revealed.

The transaction was only likely to take place in the middle of next year because it would require a change in Dutch acquisition law since EADS is headquartered in the Netherlands, the ministry sources added.

© 2011 AFP

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