Frankfurt: Germany’s Daimler AG said Friday it doesn’t plan to exercise an option to sell its sizable stake in aerospace and defense contractor EADS NV, the Franco-German company.
Daimler, based in Stuttgart, is better known for cars and trucks, but owns 22.5% of the voting rights and 15% of the equity in European Aeronautic Defence & Space Co., the parent company of aircraft manufacturer Airbus.
Its announcement comes amid speculation it was considering selling some of its ownership in EADS.
Daimler said that by keeping its investment unchanged, the balance of voting rights between German and French shareholders remained unchanged.
Daimler said it would not exercise an option to change the structure of its stake which has been placed in another company that includes investors Deutsche Bank AG, Allianz SE and Credit Suisse Group.
A banker familiar with the arrangement said that investor arrangement was not likely to change.
EADS is owned by a number of shareholders including the French government, French conglomerate Lagardere SA and Spanish holding company SEPI.
Shares of Daimler were down a third of a percent to €34.52 ($46.95) while shares of EADS were up half a percent to €14.76.