Daimler Cites Defense if Chinese Investor Turns Hostile

Daimler AG says it has plans in place to defend against a hostile takeover bid, including a move by its new Chinese investor.

But CEO Dieter Zetsche says there is “no reason whatsoever” to assume such motives for Li Shufu, who acquired a 9.7% stake in Daimler in February, Automotive News Europe reports. Li founded Zhejiang Geely Holding Group Co., which owns Volvo Cars.

Zetsche emphasizes that he is “totally fine” with Li, who became Daimler’s largest individual shareholder with his €7 billion ($8.4 billion) stock purchase. He adds that Li’s presence has been “very amicable and very constructive.”

Li told Bloomberg News that his Daimler investment would pay off in stock dividends alone and therefore doesn’t require technology collaboration between Geely and Daimler. Zetsche says there have been no specific discussions about even investigating possible areas for cooperation.

Even so, ANE notes that friendly investors in German companies have turned hostile in the past. The newspaper cites Porsche Automobil Holding SE’s move a decade ago to acquire Volkswagen AG.

Porsche SE gained a controlling stake in VW but sold its Porsche AG carmaking unit to VW to pay down debt associated with the acquisition.