Daimler backtracks, buys back stake in Tognum diesel maker
Stuttgart - In a surprising reversal of policy, Daimler said Wednesday it planned to buy back into the company that makes MTU diesel engines for ships and monster machines, barely three years after the German company dumped the shares.
The 22.3 per cent of shares in the Tognum company, based in the southern city of Friedrichshafen, are to be acquired from Swedish equity investor EQT for 585 million euros (918 million dollars), Daimler said in Stuttgart.
Daimler, which spun off MTU in late 2005, will become Tognum's largest single shareholder. EQT floated Tognum on July 2 last year.
Daimler has obtained an option on nearly 1 per cent more of Tognum's shares, moving it close to the level where it can veto key decisions which require backing from 75 per cent or more of shares. (dpa)