First GM, Now Chrysler -- Bad Week Continues
Long-time DaimlerChrysler anchor shareholder Deutsche Bank sold more than a third of its shares Tuesday, cutting its stake in the automaker to less than 5 percent. The $1.26 billion transaction leaves the Emirate of Kuwait as DaimlerChrysler’s largest shareholder, with 7.2 percent.
The bank’s departure leaves DaimlerChrysler as one of the few major carmakers without a dominant investor, which could make it a takeover target. Hedge funds currently hold between 10 and 15 percent of DaimlerChrysler, and there is a possibility of a hostile takeover to break it up. However, the sheer size of the carmaker (market capitalization of $53 billion) would make it a very difficult process
It will be interesting to see how this plays out. What a tumultuous week for the auto industry! ::Blink::
S.
