FRANKFURT German carmaker Daimler (DAIGn.DE) plans to invest the proceeds from the sale of its 7.5 percent stake in EADS EAD.PA in growing its business, the company said on Wednesday, leaving little hope for a special dividend for its investors.
"We will invest the proceeds of the sale in the global growth of our divisions and the extension of our technological leadership," said Daimler finance chief Bodo Uebber in a statement.
Following the placement of 61.1 million EADS shares on the market - some of which to be bought by German state-owned bank KfW KFW.UL - Uebber added that the group aimed to further reduce its remaining 7.5 percent stake.
"We will decide in due course on the exact date and procedure," he said.
Daimler further said that Lagardere SCA (LAGA.PA), SOGEPA, SEPI and KfW have generally agreed not to sell any additional EADS shares on the market until the extraordinary shareholder meeting of EADS, however no later than July 31, 2013.
(Reporting By Christiaan Hetzner)