Daimler Bearish on CIC Stake Purchase

German car giant Daimler is not expecting sovereign wealth fund China Investment Corp to continue with its purchase of the ten percent stake in the company. The observation was made by Daimler's Chief Financial Officer Bodo Uebber.

(Photo : Reuters)

In an interview with Handelsblatt, "No, I don't expect this to happen. There is a lot of speculation about us looking for another anchor shareholder in addition to Kuwait, but that's not true." Currently, Kuwait holds a 7.6 percent stake in the German carmaker.

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Last January, share prices of Daimler rose after a Chinese media outlet reported that CIC is interested in purchasing between a four and ten percent stake in Daimler. CIC is the country's investment vehicle and the report came after Abu Dhabi's sovereign wealth fund Aabar divested its remaining 3.07 percent in Daimler last December.

Daimler is the parent of Mercedes-Benz and its Chinese ties are strong with nearly 200,000 vehicles delivered to China for a new company record in worldwide sales.