Daimler CEO: EADS stake talks progressing

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Talks about German car maker Daimler selling a stake in Airbus parent EADS are progressing, Daimler Chief Executive Dieter Zetsche said at the Frankfurt auto show without elaborating.

Daimler aims to cut its stake in EADS and has urged the German government to find a solution, but reports have said that Berlin is having trouble finding an investor who would maintain the delicate Franco-German balance of power among shareholders.

Daimler owns 15 percent of EADS and has voting rights for a further 7.5 percent of its shares held by a consortium of financial investors, Reuters reports.

Sources have said German state development bank KfW may have to take on EADS shares from Daimler, a solution unpopular with some politicians in Berlin who oppose state intervention in the economy.

Last week, Berlin denied a report it was preparing to take a stake in EADS after failing to find a domestic private investor for part of Daimler’s holding in EADS.

A Daimler spokesman said on Tuesday the carmaker still aims to sell a stake in the European aerospace and defense company.

Daimler no longer views aerospace as part of its core business. Zetsche has said Daimler aims to maintain industrial leadership at EADS, though has not elaborated on what that would entail.