DaimlerChrysler EADS Stake Transfer Soon: Sources

DaimlerChrysler could announce the transfer of shares in European aerospace group EADS to a financial consortium as soon as Friday, industry sources said.

DaimlerChrysler declined to comment, while EADS was not immediately available.

"The matter is about to be concluded," one source familiar with the matter said, adding details could emerge later on Friday or by early next week.

DaimlerChrysler has said it plans to cut its stake in EADS to 15% from 22.5%. A group of German and international banks is expected to take the stake in return for a loan in which the shares would be held as collateral.

Some German states had also expressed an interest in taking part.

DaimlerChrysler shares came off session highs but were still up 2.4% at 49.14 euros, easily outperforming the German blue-chip index DAX, which was up 0.6%.

The deal is designed to safeguard German influence in Franco-German EADS at a time of major restructuring that could cost jobs at EADS unit Airbus.

Under the roughly 1.5 billion euro deal being discussed, the stock is supposed to revert to the carmaker after about four years, a banking source close to the matter has said. Voting rights for the shares would stay with DaimlerChrysler.

The French government and French media firm Lagardere together also own 22.5% in EADS.

EADS plunged into a crisis last year after production problems delayed its flagship A380 superjumbo, costing it almost 5 billion euros in future profits.

As cuts at EADS loom, Germany appears fearful of ceding too much influence over the firm to France.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • 4 Stocks, 4 trades: Autos, malls & Pier 1

    The FMHR traders take their positions on four stocks making news today, including Ford and General Motors down after reporting March auto sales, and the action in mall stocks.

  • Year's hottest headed for trouble?

    Sam Isaly, OrbiMed Advisors managing partner, says valuations are more than they used to be but adds, they're not crazy, they're sensible. He shares his view of the biotech sector.

  • Nike CEO on RFRA

    Many CEO's are speaking out on Indiana's Religious Freedom Restoration Act including Nike CEO, Mark Parker.