DaimlerChrysler Divesting Mitsubishi Stake

It bought more than 30% of the Japanese automaker five years ago.
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DaimlerChrysler

(DCX)

is divesting its 12.4% stake in Mitsubishi Motors through a block trade being arranged Friday by Goldman Sachs.

DaimlerChrysler bought more than 30% of Mitsubishi Motors five years ago as part of an expansion initiative championed by outgoing CEO Juergen Schrempp. The equity interest steadily fell as Mitsubishi sold fresh stock in an effort to turn around its money-losing auto operations. DaimlerChrysler said it would end further investment in the automaker last year.

DaimlerChrysler didn't say how much it was hoping to collect for the 12.4% stake, which is being offered by Goldman to institutional investors. The company said the transaction will boost its financial income by about $600 million next year.

"The current cooperation projects of DaimlerChrysler and MMC will not be affected by the disposal, and will continue as previously agreed," DaimlerChrysler said. "In addition, DaimlerChrysler and MMC plan to renew and extend current projects which are mutually beneficial."

DaimlerChrysler shares rose 47 cents, or 1%, to $50.07 in premarket trading Friday.