DCX Acquisition of 10.5 Percent Stake in Hyundai Motor Proved Good Investment

DaimlerChrysler is cash rich to the tune of $912 million after selling off its Hyundai Motor Co. Ltd stock yesterday. The worlds fifth largest automaker owned 10.5 percent of South Koreas largest automotive firm, but due to losses in its Mercedes-Benz division and only recent positive gains by Chrysler Group, the capital is needed to strengthen from within.

"Our proceeds were just over $900 million," a DaimlerChrysler spokesman commented.

The automaker was quick to state that it has no intention of pulling out of current

In order to raise some cash, DaimlerChrysler has sold its 10.5 percent share in Hyundai Motor Co. for $912 million. (Photo: Hyundai Motor America)

"Our projects continue, world engine and the like," the spokesman added.

Part of DaimlerChryslers deal with Hyundai includes disturbing some of the Korean automakers models in Mexico. The two companies also are involved in some joint purchasing.

Was it a good investment? On paper, at least, it looks like it was a

It is thought that much of the money raised from the Hyundai stock sale will go to reinforce DaimlerChryslers Mercedes-Benz division which has sustained recent losses. (Photo: Mercedes-Benz U.S.A.)

Goldman Sachs acted as broker, selling off 45.8 million in global depositary receipts to financial institutions. The shares fetched $19.92 apiece. To speed the sales process the Hyundai stock was offered at discounted prices, selling for 5 percent under the current trading price.

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