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Abu Dhabi group eyes stake in Daimler

Abu Dhabi group eyes stake in Daimler

Siddarth Raja August 10th, 2008 Siddarth Raja By Siddarth Raja Author August 10th, 2008
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December 31st, 1969 The Abu Dhabi Investment Authority (ADIA) has expressed an interest in purchasing a large stake in Daimler, according to new reports from Germany. The ADIA is wholly owned by the Abu Dhabi Government and is purported to be one of the largest wealth funds in the world, with estimates for the fund ranging between $650 billion to $875 billion. While Daimler's public position appears to deny any plans to seek a large investor, sources close to Daimler CEO Dieter Zetsche have revealed to Focus magazine that the carmaker’s boss was in favor of hearing any proposals that may provide a buffer from private equity shareholders - especially considering the volatility of the share price and the lack of other large shareholders. Currently, the nation of Kuwait is Daimler's only major shareholder with 7.6% of the German company in its hands and plans to increase this figure. While the ADIA is wholly state-owned, it’s not the only investment company being run by the Abu Dhabi government. There’s also the state-owned Mubadala Development Corp., which has a 5% stake in Ferrari and a 17% stake in Dutch sports car manufacturer Spyker.
Abu Dhabi group eyes stake in Daimler

Abu Dhabi group eyes stake in Daimler

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The Abu Dhabi Investment Authority (ADIA) has expressed an interest in purchasing a large stake in Daimler, according to new reports from Germany. The ADIA is wholly owned by the Abu Dhabi Government and is purported to be one of the largest wealth funds in the world, with estimates for the fund ranging between $650 billion to $875 billion.

While Daimler's public position appears to deny any plans to seek a large investor, sources close to Daimler CEO Dieter Zetsche have revealed to Focus magazine that the carmaker’s boss was in favor of hearing any proposals that may provide a buffer from private equity shareholders - especially considering the volatility of the share price and the lack of other large shareholders.

Currently, the nation of Kuwait is Daimler's only major shareholder with 7.6% of the German company in its hands and plans to increase this figure.

While the ADIA is wholly state-owned, it’s not the only investment company being run by the Abu Dhabi government. There’s also the state-owned Mubadala Development Corp., which has a 5% stake in Ferrari and a 17% stake in Dutch sports car manufacturer Spyker.

Tags: Industry

Posted in: Mercedes Benz, News


Comments (4 total)

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  1. By rnsaza #1, Posted: 8/10/2008

    SUPER! Now they can promote gas guzzlers and make profits both sides of the coin!

  2. By Gus #2, Posted: 8/10/2008

    The smart oil-rich countries out there realize that someday, maybe soon, there will be an invention that almost eliminates the need for oil. Be it fusion, a battery pack that can be charged in 5 minutes, whatever. If that were to happen, those countries realize that they had better be divested, or die...

  3. By YCL #3, Posted: 8/11/2008

    ...Because, you know, some sheikhs were sitting around, shooting the shit, and one was like, “My new Benz, it is beautiful.” And the other one was like, “Ah, you bought a new Benz. I am thinking of buying the company.” Take that, punk.

  4. By Gus #4, Posted: 8/11/2008

    :)

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