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ADIA in Talks to Purchase Major Stake in Daimler - (Global)
August 11th, 2008
Reports by the German car magazine Focus says that the world’s largest sovereign wealth fund, Abu Dhabi Investment Authority (ADIA), which owns a large stake in Citigroup, has now shown interest in Daimler.
Currently Kuwait is the only major stakeholder in Daimler with a share of 7.6% and plans on increasing that share percentage in the company shortly.
A Daimler spokesman said: “We do not comment on current and potential investors when their holdings are below disclosure levels”
Daimler Chief Executive Dieter Zetsche mentioned that he would be open to any offers from large investment companies and will be seriously taken into consideration.
The sudden interest in the German car maker is due to the weak share price and the lack of large shareholders for substantial financial backing. This further boost from investors could be seen as an opportunity for Daimler to assist in the companies’ growth and future development plans.
The magazine adds that Daimler managers were already in talks with ADIA, but no details of the purchase has been announced.