DaimlerChrysler May/To Sell Hyndai Share for $1 Billion

STUTTGART, Germany, April 22, 2004; Alexander Huebner writing for Reuters reported that DaimlerChrysler AG is considering selling its 10 percent stake in Hyundai Motor Co Ltd, worth an estimated 850 million euros ($1 billion), supervisory board sources said on Thursday.

DaimlerChrysler's supervisory board will be informed of progress in the drawn-out talks with South Korea's largest carmaker at a meeting later on Thursday, sources said ahead of the start of the meeting.

A spokesman at DaimlerChrysler declined to comment but confirmed the company was in talks with Hyundai on various topics. No indications were given on who may be interested in buying the stake.

A source suggested that the proceeds could allow Daimler to fund a capital injection at ailing affiliate Mitsubishi Motors Corp, a subject which the board was already discussing.

No decision was expected this Thursday, the source said.

The DaimlerChrysler spokesman said no decision had been taken yet on Mitsubishi. A rescue plan is due to be presented to the Japanese company's shareholders on April 30.

Earlier this month, a source said DaimlerChrysler's senior management team was expected to meet this week to discuss Mitsubishi.

Recent media reports have said that DaimlerChrysler's alliance with Hyundai was on the brink of collapse amid doubts about their plans to build commercial vehicles and engines together.