June 22, 2009 / 12:12 PM / 10 years ago

STOCKS NEWS EUROPE-Daimler gains on Porsche stake report

Shares in Daimler (DAIGn.DE) gain 1.9 percent, as traders point to support from a report over the weekend that the automaker is in advanced talks to buy a stake in luxury carmakerPorsche (PSHG_p.DE).

A spokesman for Daimler calls the report “pure speculation” and a Porsche spokesman says he had no knowledge of talks with Daimler. “Despite DaimlerChrysler being a prominent example of failed M&A, we would not deny the industrial logic of such a step (buying a Porsche stake) given rising technology costs,” says Commerzbank analyst Daniel Schwarz in a note to customers.

The move would ally two of the big German autoplayers, VW (VOWG.DE)/Porsche and Daimler and would leave BMW BMW.DE to fend for itself, says a Frankfurt-based trader.

Porsche shares are 0.3 percent lower, while BMWG.DE shares are off 3.2 percent.

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Reuters Messaging rm://kirsti.knolle.thomsonreuters.com@reuters.net


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