REPORT: Daimler sells 9.1% stake to Abu Dhabi firm for $2.7 billion
The global auto industry is enduring its worst crisis in decades, and iconic companies with 100-year histories are being pushed to the brink. Luxury automaker Daimler is no different, with Mercedes-Benz sales down 17% in the past quarter and posting a loss of $1.95 billion in the fourth quarter alone. To help alleviate the a major cash crunch, Daimler has sold off 9.1% of the company to Abu Dhabi firm Aabar Investments PJSC. Aabar purchased 96.4 million shares at a 5% discount under the stock price of 21.34 euros. Daimler shares were selling for 45 euros a piece before the rug was pulled out from under global luxury car sales. Both companies consider the partnership to be a long-term investment, as Daimler will need all the help it can get weathering brutal automobile sales slump. The two companies will also collaborate on electric vehicle development and Daimler will build a training center in Abu Dhabi. Thanks for the tip, Abdul!
[Source: Bloomberg | Photo: Torsten Silz/Getty]
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Reader Comments (Page 1 of 1)
jc 8:14AM (3/23/2009)
Daimler's fortunes may be helped by new product.
The C class is successful and the totally new E class sedan and coupe will be introduced shortly.
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Javanese 8:42AM (3/23/2009)
Ouch.. you know it's bad when they offering discount.
I wonder if VW are reconsidering Porsche offer... with a discount.
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Rob 9:49AM (3/23/2009)
Let's see.... most Veyrons owned by Arabs, most Ferraris owned by Arabs, most gold plated cars owned by Arabs, most F1 theme parks owned by Arabs, and now portions of major car companies?
Anybody else see a problem yet? America is going to be owned by Arabs and China.
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MGS4TW 11:19AM (3/23/2009)
I'm pretty sure everything you just mentioned resides in Europe, not America.
Sea Urchin 11:40AM (3/23/2009)
We getting arab money
My second favorite Youtube video
http://www.youtube.com/watch?v=8T5hbz3wI2k
Mazda FTW! 9:58AM (3/23/2009)
These are just investment firms. That whole region (or atleast their governments) are allies for the simple reason that they need Western power to keep "Persia" and other issues kept out of their oil-funded party-pads.
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Rick Gee 9:59AM (3/23/2009)
"Anybody else see a problem yet? America is going to be owned by Arabs and China"
Only because we keep buying foreign.
It's your country - and your decision.
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Rob 10:58AM (3/23/2009)
I don't. >shrug< I buy almost everything locally. Food. The only thing I can't afford to buy made in America is clothing.
Willem B 11:05AM (3/23/2009)
where's your tv made?
where did you buy your computer from? Who made it? Where did the parts come from?
How about the dishes and cutlery in your house?
What about your lawn mower?
What about the cell phone you have?
How about the kitchen appliances?
Maybe the garage door openers?
I'll bet you a dollar that at least 2 or 3 of the things in the above list that you own was NOT made in North America. It's not just the car that you drive. it's everything.
Also, when you buy a used car, you're not really helping any auto industry, domestic or foreign.... so get that stupid sticker off your back bumper...
Sea Urchin 11:44AM (3/23/2009)
That is why i have been begging for a higher CAFE standards....but apparently that is unAmerican and impedes on peoples lifestyles.
keep the change 12:35PM (3/23/2009)
Great, just as we start to wind down our dependence on arab oil, the arabs are starting to put that oil money into controlling other aspects of our society, so they will be holding us by the short and curlies forever.
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