Daimler AG has rebuffed an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement due to long-held reluctance to see existing shareholdings diluted, people with knowledge of the discussions said.
A stake of that size would be worth as much as .5 billion at market prices.
The two automakers held a meeting in Beijing in recent weeks at Geely's request. The Chinese company, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3 percent and 5 percent if Daimler would issue new shares at a discount, according to the people.
The German group declined the offer but told Geely that it was welcome to buy shares in the open market, they said.