New and Used Car Talk Reviews Hot Cars Comparison Automotive Community

The Largest Car Forum in the Philippines



Results 1 to 7 of 7
  1. Join Date
    Feb 2005
    Posts
    137
    #1
    Goldman grabs all of Daimler's MMC stake

    By KAHO SHIMIZU
    Staff writer

    DaimlerChrysler AG sold its entire stake in Mitsubishi Motors Corp. to Goldman Sachs International, making the securities firm the top shareholder in the automaker with a 13.45 percent stake, MMC said Friday.

    The German-American auto giant will post a 500 million euro gain in the current fiscal year with the sale of its 12.42 percent stake to Goldman, DaimlerChrysler said.

    DaimlerChrysler, which was once the top shareholder in MMC, with a 37 percent stake, decided to halt its financial support to the struggling automaker in April 2004.

    This forced MMC to seek a capital injection from other investors and Mitsubishi group firms. This caused DaimlerChrysler's stake in MMC to shrink.

    "The current joint projects between DaimlerChrysler and MMC will not be affected by the (asset) disposal, and will continue as previously agreed," including joint development and production of engines, DaimlerChrysler said in a statement.

    Before the completion of the sale of DaimlerChrysler's stake in MMC to Goldman, Mitsubishi Heavy Industries Ltd. was the top shareholder, with a 13.9 percent stake, according to MMC.

    MMC, which has been embroiled in vehicle defect coverups, is struggling to turn its business around.

    Although the carmaker's losses narrowed significantly in the first half of fiscal 2005, it still had a net loss of 63.8 billion yen and an operating loss of 19.8 billion yen in the six months from April to September.

    MMC officials said there will be no impact on the automaker from the share transaction.

    DaimlerChrysler had previously said it has no intention of selling its stake in MMC, but analysts were skeptical, saying there is no reason for the German carmaker to keep holding the shares.

    "DaimlerChrysler must have been waiting for the best time to sell its stake in MMC to minimize its loss from the deal," said Yasuhiro Matsumoto, a senior credit analyst at BNP Paribas Securities (Japan) Ltd.

    The Japan Times: Nov. 12, 2005
    Last edited by gaijin; November 12th, 2005 at 11:58 PM. Reason: shorter title

  2. Join Date
    Jan 2005
    Posts
    4,866
    #2
    i wonder how they'll turn mitsu around...

  3. Join Date
    Feb 2005
    Posts
    137
    #3
    They'll probably split the company into smaller units and sell them off one by one. OR...Goldman might sell MMC to the Chinese...!!

  4. Join Date
    Dec 2003
    Posts
    11,317
    #4
    well mitsu has nowhere to go but up..unless lalong malasin hehe

  5. Join Date
    Oct 2005
    Posts
    5,465
    #5
    wawa...naman mitsu...pero sabi naman lahat ng projects and joint developments will still push through(tama spelling?..o push thru...censya na!) as planned...

    and pls....NO NO chinese firm to hold Mitsu please lang....

  6. Join Date
    Oct 2002
    Posts
    1,012
    #6
    No, the shares of Daimler Chrysler was reduced to minority when the Mitsubishi Group infused additional capital into the company (Bank of Tokyo-Mitsubishi, Mitsu Industrial, and other Mitsu affiliates).

    Goldman Sachs, being an investment bank, bought the shares held by Daimler Chrysler at a steep discount (compared to market price) hedging on the hope that Mitsu will turn around later on.

    Control and management still rests on the Mitsu/Japanese principals.

  7. Join Date
    Jun 2003
    Posts
    1,961
    #7
    I hope Mitsu can do what Nissan did ...

Mitsubishi Motors sold to Goldman Sachs