‘NO SIGN OF HOSTILE TAKEOVER’
CEO says Chinese magnate Li Shufu has no intention to go beyond his near 10pc stake in German carmaker
GERMAN carmaker Daimler AG’s boss said yesterday there was no indication the firm’s largest single shareholder, Chinese magnate Li Shufu, was planning a hostile takeover after he took a US$9 billion (RM35.22 billion) stake in the firm earlier this year.
Daimler chief executive officer (CEO) Dieter Zetsche said Li, the head of Chinese carmaker Geely, had told the firm he had no intention to go beyond his current near 10 per cent stake in Daimler, which he announced in February.
Li’s deal for the stake in Daimler raised fears in Germany about the country’s most-prized assets falling into Chinese hands, especially because the deal had not triggered normal disclosure thresholds and so caught market insiders unaware.
The Chinese business leader had used Hong Kong shell companies, derivatives, bank financing and carefully structured share options to keep the plan under wraps until, at a stroke, he become Daimler’s single largest shareholder.
The Daimler CEO added that there had been no discussions about guarantees that Li would not increase his stake.
Zetsche, speaking at a roundtable event at the Beijing car show here, added the firm was not currently considering cooperation with Li or Geely. Daimler already has a Chinese joint venture partner BAIC.
Li and his firm Zhejiang Geely Holding control Sweden’s Volvo Cars, London black-cab maker LEVC, as well as its own Hong Kong-listed unit Geely Automobile Holdings. It has also agreed to buy a US$3.3 billion stake in Volvo Trucks.
Several major deals last year raised German sensitivities about multi-billion euro foreign takeovers, notably Chinese home appliance maker Midea Group buying German robotics firm Kuka, and Hong Kong billionaire Li Ka-shing buying German metering firm Ista.