Germany’s luxobarge makers aren’t just happy selling their luxobarges to China. Now they want Chinese money straight up. Daimler is flirting with the Chinese sovereign wealth fund China Investment Corporation (CIC), which may want to buy 5 or 10 percent of Daimler.
Sovereign wealth funds invest their money in stocks, where it supposedly yields more than buying T-bills denominated in a devaluing dollar.
According to Germany’s manager magazin, China had shown interest in a piece of Daimler for years, but always had been outbid and outbought by rich sheikhs. In 2009 for instance, the Abu Dhabi sovereign wealth fund Aabar was faster than the Chinese.
Now, Daimler hired an investment bank with the declared goal to get the Chinese on board. Daimler sees bunches of positive aspects to a Chinese engagement. If the Chinese government has money riding on Daimler, it might buy more Benz and less Audi.
Daimler is also interested in intensifying its joint venture with Beijing’s BAIC, and could plow the money right back into that. The Chinese should like that.
Finally, having about 30 percent of the stock in the hands of „friendly“ shareholders would be good insurance against a hostile takeover, the magazine heard in Stuttgart.