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Daimler still seeking to sell Chrysler stake

  Daimler AG still wants to sell its nearly 20% stake in US carmaker Chrysler, a spokesman for the German group said on Tuesday amid speculation Fiat would join forces with Chrysler.

“We are still trying to divest our 19.9% stake in Chrysler,” the spokesman said but he declined to discuss to whom it wanted to sell the holding. It has been in talks with private equity group Cerberus Capital Management, which bought the rest of Chrysler in 2007.

The spokesman declined comment on prospects for a combination of Fiat and Chrysler other than to say: “We welcome any initiative that serves to stabilize the situation at Chrysler and preserve jobs at the company.”

Daimler is not ruling out the idea of seeking German state guarantees for its finance arm, he added, noting the company did not want to be at a competitive disadvantage should rivals make use of the program for their financing operations. Volkswagen has already applied for such guarantees and BMW has said it is considering the idea.

Daimler shares gained 2.9% to €23.95 by 0923 GMT, outpacing a 1.2% rise in the DJ Stoxx European car sector index. (Reuters)