DaimlerChrysler in talks on EADS share sale

Reuters / FRANKFURT -- DaimlerChrysler AG, a large shareholder in aerospace company EADS, is in talks with the German government about selling 7.5 percent of its stake to a newly formed holding company, German financial daily Handelsblatt reported.

In a preview of its Thursday, Oct. 19, edition, the newspaper, citing participants familiar with the talks, wrote that five financial institutions would take stakes in the new company.

The German government has already received commitments from Deutsche Bank AG, Commerzbank AG and Goldman Sachs Group Inc., the paper said.

According to the plan, DaimlerChrysler would retain the voting rights, and in return it push EADS management to propose high dividends for investors.

DaimlerChrysler, Goldman, Deutsche and Commerzbank all declined comment, while the German government could not be reached for a statement.