Daimler to decide about EADS stake this year

Jun 21, 2011, 16:14 GMT

New York - German car maker Daimler is deciding what will happen with its stake in in the European Aeronautic Defence and Space Company (EADS), Chairman Dieter Zetsche said Tuesday in New York.

Daimler holds 15 per cent of EADS stock and 22.5 per cent voting rights, providing the German counter-weight to the French state and private Lagardere company. Daimler is legally bound to its EADS participation until 2012.

'We don't believe that aerospace is part of our core business,' Zetsche told journalists. 'There's a lot of noise in the market, and not without cause.'

Zetsche said Daimler was discussing with the German government one possible scenario, which would see Berlin take over Daimler's stock to maintain the German-French balance in the parent firm of Airbus.

'We cannot hold endless discussions,' he said, adding that a decision would probably be made by the end of 2011.

Zetsche's comments follow months of speculation. Airbus chief Thomas Enders has opposed participation by the German government in EADS.

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