Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
Geely's Daimler stake should have been disclosed earlier, Germany says
Reuters | 2018/5/15

FRANKFURT -- German markets regulator BaFin is reviewing whether to impose fines after it determined Geely Chairman Li Shufu's transactions to buy a 9.69 percent stake in Daimler should have been disclosed earlier.

Li disclosed on Feb. 23 that he had amassed a $9 billion investment in the German carmaker using banks, shell companies and derivatives, prompting questions in Berlin political circles about the adequacy of German disclosure rules.

Li, who controls carmaker Volvo, revealed he had control over almost 10 percent of rival Daimler, parent company of luxury brand Mercedes-Benz, even though German rules require investors to reveal if their stake exceeds the 3 percent, 5 percent and 10 percent thresholds.

"Voting rights disclosures by Shufu to Daimler should have been reported on February 22," BaFin said in a statement on Saturday. The regulatory disclosures have since been amended to reflect the earlier date of February 22 rather than February 23, BaFin said.

"Whether this could also be relevant in regard to fines, is something we are looking at," BaFin said, adding that the maximum fine to be paid by private individuals who violate disclosure rules could be two million euros, and for companies 10 million euros, or five percent of annual revenue.

As part of the Geely deal, German regulator BaFin asked Morgan Stanley to correct a disclosure filing, according to a letter from Germany's finance ministry, which was seen by Reuters. Germany's finance ministry, which oversees BaFin, declined to comment on this specific case.

Investment bank Morgan Stanley, which held Daimler voting rights that would later pass on to Li, has amended its disclosure filing to reflect the new date, the letter said.

A spokeswoman for Morgan Stanley on Saturday declined to comment.

Frankfurter Allgemeine Zeitung was first to report the existence of the letter.

Morgan Stanley was part of a group of banks which helped Geely's chairman buy a stake in German carmaker Daimler in a way which helped avoid early disclosure. BaFin is now investigating whether Li broke disclosure rules.

Geely on Saturday said it had informed markets in a timely fashion. "The capital market was at all times informed about the correct number of voting rights," Geely said in a statement.

"However, BaFin has asked Geely to make an additional disclosure for 22 February 2018 based on a new interpretation of the legal provisions by BaFin which was published for the first time on 9 May 2018," Geely said.

Reuters reported on February 6 that Geely had bought Daimler shares and was intent on building a stake after being rebuffed by Daimler in late 2017. BaFin at the time said the stake would have to be disclosed if it was bigger than 3 percent.

Reuters later revealed that Geely had been building the stake over a period of months.

Elisabeth Roegele, BaFin's chief executive director of securities supervision, told Reuters that BaFin was reviewing a request for information about the size of Geely's Daimler stake made by Reuters in the first week of February.

Related Stories
  • Geely denies report it sold Daimler shares
  •     --Published:2019/15/1
  • Geely sees sales growth evaporating as market struggles
  •     --Published:2019/8/1
  • Geely, Great Wall to add plants in China
  •     --Published:2018/21/12
  • Geely sales growth pace slows despite new products
  •     --Published:2018/11/12
  • Daimler weighs a larger stake in BAIC joint venture, sources say
  •     --Published:2018/7/12
  • Li Shufu's sky-high ambitions for Geely as mobility provider
  •     --Published:2018/9/11
  • Geely shores up sales on Lynk & CO volume
  •     --Published:2018/9/11
  • Lynk & CO 'gears' up for U.S.
  •     --Published:2018/30/10
  • Daimler, Geely form ride-hailing JV in China
  •     --Published:2018/26/10
  • Lynk & CO's first sedan, the 03 compact, goes on sale
  •     --Published:2018/23/10
  • Geely 'corrects' rumors about presidential family ties
  •     --Published:2018/19/10
  • Who will follow BMW and gain control of key China operations?
  •     --Published:2018/19/10
  • Geely-backed flying-car developer Terrafugia starts taking orders
  •     --Published:2018/16/10
  • Daimler, Geely team up on ride-hailing venture
  •     --Published:2018/12/10

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     


    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.