Daimler Plans To Keep On Truckin’

After years of struggling and shedding lousy assets via ‘bankruptcy’ or negotiated deals, there really hasn’t been

Daimler AG, Annual Press Conference, February ...

any spinoff talk from the US automotive industry. It appears that is also the case across the pond as Daimler AG (DDAIF) CFO Bodo Uebber said in a recent roundtable discussion that the company is not considering a spinoff of its truck unit. Mr. Uebber noted the many synergies between the car and truck businesses such as hybrid technology and emerging market sales as a reason for the units remaining together. Additionally, Mr. Uebber denied that the company has been shoring up its takeover defenses.

Rumors of a potential spin emerged last September after a union leader announced that the company workers were opposed to any spinoff of the truck business. Apparently several large funds owning small stakes in the company had sought a break up of the company. Daimler lags its peers in several metrics and is trying to improve in order to catch up, but some, including Credit Suisse analyst Ardnt Ellinghorst, believe that the business would be best served by breaking up.

Disclosure: Author holds no position in any stock mentioned.

 

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