Deutsche Bank to sell $1.26 bn stake in DaimlerChrysler

Nov 22 | Updated: Nov 23 2005, 07:48am hrs
Deutsche Bank AG, Germanys biggest bank, is selling about 1.08 billion euros ($1.26 billion) of shares in DaimlerChrysler AG to institutional investors as it focuses on its main businesses, such as investment banking.

The lender is selling as many as 25 million shares, or 2.5% of DaimlerChryslers stock capital, Deutsche Bank said in an e-mailed statement on Tuesday. Thats more than the 20 million shares it originally said it was selling. The company is offering the shares to investors at 42.80 euros to 43.20 euros apiece.

Kirsten Siersleben, a spokeswoman for Deutsche Bank, declined to comment on the size of the companys possible gain from the share sale, which the bank is managing alone. The carmakers stock, which has risen 23% this year, fell 1.7% to 43.34 euros in Frankfurt. Deutsche Bank chief executive officer Josef Ackermann, 57, is selling some of the stakes the bank holds in other companies to give the lender money to expand its main businesses. He said in Sept the Frankfurt-based company will do everything to expand in investment banking, its most lucrative division.

Bloomberg

SMOOTH RIDE
Deutsche Bank is selling as many as 25 million shares or 2.5% of DaimlerChrysler's stock capital
The bank also sold its 37.7% stake in German mortgage lender Eurohypo AG to Commerzbank AG last week