Geely defends disclosure practices in Daimler share deal

Updated 2018-05-14 10:02:03

Chinese automaker Zhejiang Geely Holding Group said on Sunday that it accurately disclosed the transactions involved in the purchase of a 9.69 percent stake in German car giant Daimler AG, contending it had not violated German disclosure rules.

German market regulator Germany's Federal Financial Supervisory Authority (BaFin) never raised an objection to Geely's disclosure on February 23 when deal was finalized, Geely said in a statement it sent to the Global Times.

However, BaFin required Geely to provide additional information on its activities on February 22, and Geely informed investment banks on February 22, and its stockholders have in theory agreed to the potential transaction.

"But such internal communication is not legally binding. Both sides have no legal obligations until they officially signed the agreement on February 23," said the statement.

Geely contended that the request is based on a new interpretation of the law by BaFin, which was only released for the first time on Wednesday.

The comment came after the BaFin found that transactions to buy the Daimler stake on behalf of Geely Chairman Li Shufu did not meet German disclosure rules, Germany's Frankfurter Allgemeine Zeitung newspaper said.

Investment bank Morgan Stanley should have disclosed its transactions on February 22 rather than on February 23, Frankfurter Allgemeine Zeitung said, quoting a letter written on behalf of German Finance Ministry official Christine Lambrecht.

BaFin, which is overseen by Germany's Finance Ministry, was not immediately available for comment. A spokeswoman for Morgan Stanley declined to comment.

Morgan Stanley was part of a group of banks that helped Geely's chairman buy a stake in German carmaker Daimler in a way that skirted disclosure rules.

Geely said that the notice to Morgan Stanley on February 22 does not mean the deal was finished, and it was only completed on February 23.

Violating disclosure rules can carry a penalty of up to 2 million euros (.39 million) for individuals, and up to 10 percent of annual revenues for corporations.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58March 19 2019 01:26:09

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16March 19 2019 01:26:09

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18March 19 2019 01:26:09

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords