WEST PALM BEACH, FL (www.hedgeco.net) – Management changes in auto maker DaimlerChrysler have attracted more interest from hedge funds in the firm. According to Reuter�s news reports, hedge fundshave increased their stakes in the firm recently. An anonymous source told Reuters that “It is not unrealistic to assume that hedge funds have increased their holdings.� The source did not providedetails.
According to published reports, hedge funds now control more that 20 percent of DaimlerChrysler. In May the chief financial officer Bordo Uebber estimated that hedge funds controlled between 10 percent and 15 percent of the firm.
More hedge fund interest in the firm resulted from surprise news that Juergen Schrempp is stepping down as the Chief Executive of DaimlerChrysler effective at the end of the year. Another major share holder in Daimler, Deutsche Bank has reportedly reduced their stakes in the firm.
Dieter Zetsche, who is the Division Chief for DaimlerChrysler will take over from Schrempp according to Reuters. A Frankfurt banker told Reuters that “No one in the industry is surprised if hedge funds hold around 20 percent of Daimler in all,� the banker added, “And it is very clear: If that does not happen, they will turn on the pressure.�
DaimlerChrysler spokesperson could not reveal what percentage of the firm is owned by hedge funds. Hedge funds have become a formidable force to recon with in the global financial markets. Last year hedge funds led a campaign in Germany which resulted in the resignation of the German head of the Stock Markets.
Such power has led to calls from German authorities for the international approach for the regulation of hedge funds. German Chancellor Gerhardt Schroeder however failed to win over the support of both the U.S. and U.K. at the G8 meeting in Scotland for additional regulations for the global hedge fund industry.
Paul Oranika
Contributing Writer
HedgeCo.Net
Email: paul@hedgeco.net
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