Daimler Holding Talks With China Wealth Fund

Shanghai, April 22, 2009: (Gasgoo.com) Daimler is holding talks with Chinese sovereign wealth fund CIC over a possible investment by Beijing, reported Reuters, citing a German newspaper.

"We have met several times in the past, and talks have not in principle been broken off," Chief Executive Dieter Zetsche told German daily Frankfurter Allgemeine Zeitung.

Chinese state investment fund China Investment Corporation (CIC) has seen sharp declines in its investments in Wall Street bank Morgan Stanley and U.S. private equity house Blackstone Group LP since buying stakes in the two firms. The company said it is considering further investments in Europe.

Mr. Zetsche pointed out that it was a success that International Petroleum Investment Company (IPIC) recently bought into Daimler as the company gained financial security following the transaction. Abu Dhabi-based IPIC acquired a stake of 9.1% in Daimler for EUR 1.95 billion on March 21.

A Daimler spokesman said the company was constantly in talks with current and potential investors.

Daimler launched its Smart minicar in China at prices ranging from 158,000 to 206,000 yuan ($23,110-30,130) on April 8. It will be available in 17 dealerships in 13 Chinese cities.

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