Germany says it still aims to buy EADS shares from Daimler via state bank
BERLIN (Reuters) -- Germany will continue talks to take over shares in European plane maker EADS from carmaker Daimler through the KfW state development bank, the government said after merger talks between EADS and the UK's BAE Systems collapsed.
The government acknowledged the decision on Wednesday of the two companies to abandon merger talks, Chancellor Angela Merkel's spokesman Steffen Seibert said in a statement, adding that Berlin had full confidence in the EADS management.
"The German government will ... continue negotiations on taking over shares held by Daimler through the KfW," said Seibert.
Daimler had planned to exit its stakeholding after a deal between the two companies, saying that a merger could lead to the Franco-German shareholder pact that ensures a delicate balance of power at the Airbus parent being dissolved.
The automaker had been pressuring the German government for months to find a buyer for at least part of its holding as the company plows cash into vehicle development at its Mercedes-Benz unit.
EADS, based in Paris and Munich, saw its stock jump 21 percent last year, valuing the company at 17.3 billion euros.
Daimler was a founder of EADS by contributing its Dasa aerospace unit to the plane making and defense company's formation in 2000.
Automotive News Europe contributed to this reportContact Automotive News