DaimlerChrysler’s New Plan To Sell MTU

Posted on August 15, 2005
Agence France Presse (AFP) is reporting that DaimlerChrysler has yet another plan to divest itself of its MTU Friedrichschafen diesel-engine manufacturing subsidiary. Previous plans have been blocked by family shareholders of MTU who have the right to veto strategic decisions.

Now, according to the French news service, DaimlerChrysler plans to call an extraordinary general meeting on September 1 for all shareholders, where it will propose transferring the assets of MTU into a new company and liquidating the old MTU. The new company would be absolved of the special family shareholder rights, and, in theory, free DaimlerChrysler to sell it to whomever it wanted. However, at a report in the German daily newspaper Handelsblatt said the families could be expected to mount a legal challenge to the action.