Geely to increase its Daimler stake?

Chinese speculations suggest that Geely and its owner Li Shufu intend to increase their Daimler stake from currently slightly less than 10% by another 15%. According to Daimler’s most recent ownership report, Bank of America currently controls 15.7% of Daimler’s votes and Morgan Stanley another 5.5%, with Bank of America overwhelmingly via options. These two banks were apparently the organisers of Geely’s initial investment and some of Geely’s current Daimler shares might well be included. When Geely announced the initial stake, Daimler’s shares traded at around €70, but they have meanwhile fallen to some €55. As some or perhaps all of the above-mentioned options might not relate to Geely but to other institutional investors, these speculations might be to try to bring Daimler’s share price back to a higher level to limit, or at least reduce, the loss that has occurred since February of this year. Li Shufu’s wealth is believed to amount to $12bn or €10bn. The discrepancy between the Daimler purchase value and its current market value amounts to €1.6bn, i.e. Mr Li has lost some 15% of his wealth with this initial transaction alone. Is he willing to risk more?