Daimler reduces EADS stake to 7.5%

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Daimler is to sell half of its 15% shareholding in EADS to the German government's KFW bank in 2012.

The car maker and Berlin administration have agreed the purchase in principle and plan to sign a letter of intent with the state-owned bank before the end of 2011.

The deal is separate from the 7.5% share packet, which Daimler temporarily transferred to a consortium of German banks in 2007.

However, the Stuttgart-based company said that it would hold "conclusive discussions in the near future" with the government about the "long-term structure" of that banking consortium.

The company added that the "shared understanding [with the stakeholders] is that the investor consortium should fundamentally continue to exist".

After the sale to KFW bank, Daimler's shareholding in EADS will be reduced to a third of its former 22.5% stake, which it held when the Airbus parent was formed in 2000.

However, Daimler will continue to have the voting rights for the banking consortium's share packet "for the time being", giving it 15% of the votes. Daimler and KfW's voting rights are to be pooled in an intermediate holding company.