Friday, April 17, 2009

Daimler boosted by UAE investment



Daimler shares have been boosted by Aabar Investment's stake in the company [EPA]
Shares in Daimler, the German carmaker, have been boosted following a $2.7bn investment from a company linked to the government of Abu Dhabi.
Aabar Investments, a fund set up by the Gulf state, said it would purchase a 9.1 per cent stake in Daimler, becoming its largest shareholder.
Shares in the carmaker leapt by 6.26 per cent on the Frankfurt stock exchange on Monday as investors reacted to the news.
The deal comes after the company reported a net loss of $2.1bn in the final quarter of last year as the global financial crisis hit demand for its vehicles.
Aabar's purchase of shares in Daimler, which makes Mercedes-Benz cars and is the world's leading heavy truck manufacturer, will help bolster the carmaker's finances.
The investment highlights the continuing financial power of some Gulf region states despite the global downturn.
The second largest shareholder in Daimler is Kuwait's main sovereign wealth fund, which has a 6.9 per cent stake in the company.
Last December, Aabar agreed to purchase AIG Private Bank, the Swiss-based wealth management arm of the American International Group.

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