DaimlerChrysler Still has Excess Liquidity
DaimlerChrysler still believes it has excess liquidity on hand but has not yet decided what to do with it, a spokesman for the world's fifth-biggest carmaker said on Wednesday.
He was reiterating comments that Chief Financial Officer Bodo Uebber made in May.
"We have this excess liquidity and we have said we will decide what to do with it in the interest of shareholders. That remains the case," the spokesman said.
He was responding to market speculation that the group's provision of a $1.5 billion loan to help finance Cerberus Capital Management's purchase of a majority stake in U.S. arm Chrysler could reduce prospects for a special dividend.
Uebber said in a conference call after first-quarter results that Daimler would reveal by February at the latest what to do with the excess funding but declined to give more details.
DaimlerChrysler shares fell 0.6% but came off session lows after the spokesman's comments, still the leading decliner among German blue chips.
Traders had also cited market talk that U.S. investors were moving out of the stock because it would not be a part-American company after the Chrysler divestment.