* Bank gets 110 mln euro Q3 gain from Daimler stake
* Held 0.9 pct in carmaker as of end-Q2
* Sale unwinds key part of cross-shareholding network
FRANKFURT, Oct 29 Deutsche Bank (DBKGn.DE) has
sold its remaining stake in carmaker Daimler (DAIGn.DE) in one
of the final steps towards unwinding 'Germany Inc', a once
powerful system of cross-shareholdings in Europe's largest
The bank made a gain of 110 million euros ($163.2 million)
from divesting the Daimler shares in the third quarter, it said
on Thursday with the release of earnings. [ID:nLT114515]
Just 13 years ago, 60 of Germany's 100 biggest companies
belonged to the shareholding network, set up as a tool to
protect German companies from foreign takeover and provide
support in the event of large-scale bankruptcies.
Deutsche, Germany's largest bank, had been at its centre
along with insurer Allianz (ALVG.DE).
The bank, which has gradually reduced its Daimler stake over
the past couple of years, had already sold its holdings in
Allianz and industrial gases producer Linde (LING.DE).
As banks helped big industrial companies going public, they
often ended up with some of the shares in their own portfolio,
translating into board seats and guaranteeing the status of
"most favoured bank" - otherwise referred to as the "Hausbank".
Through board seats on these companies, Deutsche Bank could
force changes in corporate Germany while also looking after the
country's interests, providing loans to large German
corporations under favourable conditions if they helped Germany
gain a competitive advantage in a particular industry.
In one infamous incident in 1987, Deutsche Bank Chief Alfred
Herrhausen fired Daimler Benz chief Werner Breitschwerdt and
installed Edzard Reuter in his place.
'Germany Inc' began to break down in the late 1990s when
Deutsche took the decision to focus on its core banking business
and began to unwind the stakes.
The sell-off was also fuelled by the introduction of the
euro and new tax rules that allowed German firms to divest
assets at favourable conditions.
(Reporting by Edward Taylor and Eva Kuehnen; editing by
Simon Jessop, John Stonestreet)