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Daimler to stop trading on New York Stock Exchange

DPA/The Local · 15 May 2010, 13:35

Published: 15 May 2010 13:35 GMT+02:00

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“Daimler continues to place great importance on having an international shareholder base,” Daimler’s Chief Financial Officer Bodo Uebber said.

“The trading centre for our shares, however, clearly is Frankfurt – and that is also the case for our international investors.” In the United States, Daimler’s trading volumes have dropped below 5 percent during the past year.

In a statement, Daimler cited “consistently low trading volumes” as one of the reasons for its decision, along with “changed investor behaviour.”

The company said North America would continue to be an important market for Daimler cars, where the company earned nearly one-fourth of its global revenue in 2009. Almost one in every 10 of Daimler’s 256,000 employees works in North America.

The company said it hopes the move will simplify financial reporting procedures and save on fees and administration costs. The Stuttgart-based luxury carmaker isn’t the only German company to leave Wall Street, joining previous de-listers Deutsche Telekom, Eon, Allianz and Bayer.

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Daimler expects the changes to take effect in a matter of months. The company said it also plans to apply for delisting with the SEC.

In late March, Daimler agreed to pay fines totalling $185 million as part of a settlement with the SEC and US Justice Department over bribery allegations. The company was accused of making improper payments to government officials in at least 22 countries in exchange for lucrative business contracts.

DPA/The Local (news@thelocal.de)

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Your comments about this article

14:09 May 15, 2010 by hanskarl
In light of the situation in the US stock market trading practices along with the problems at the SEC Daimler is doing itself a huge favor.
16:41 May 15, 2010 by Prufrock2010
This is Daimler's way of saying that it intends to continue to do global business through bribery, without being subject to that pesky American Foreign Corrupt Practices Act.


It's a rather startling admission of corruption on Daimler's part. Apparently it knows that Germany will not enforce its anti-bribery laws against one of its largest corporations.

However, since Daimler still manufactures vehicles in the United States, I suspect that the SEC isn't Daimler's only problem in America. The U.S. Justice Department has other weapons in its arsenal to hold Daimler accountable for its ongoing violations of the FCPA, such as RICO, so long as Daimler conducts business of any sort within U.S. jurisdiction.
19:56 May 15, 2010 by ColoSlim
I wonder if the SEC caused this? Reporting requirements to stringent? All that money saved in accounting fees should help with profitability.
00:14 May 16, 2010 by Prufrock2010
Of course American companies do it. And sometimes they get caught. That's why the Foreign Corrupt Practices Act was enacted by the Congress -- to prevent such practices. RICO was enacted to combat racketeering, but there are still plenty of people and corporations engaging in racketeering. And sometimes they get caught and sometimes they are held accountable.

I'm with Parnell on this one. I'm also with jmjdk. Daimler's PR is BS. It's an open announcement that Daimler intends to continue its corrupt policies beyond the scrutiny of the SEC. Simple as that.
10:34 May 16, 2010 by Prufrock2010
parnell --

I think jmjdk was being sarcastic.

So you're in favor of greater German regulation of extra-territorial commercial bribery committed by any company listed on the German exchanges? I'm in full agreement with that. In addition to American violators, they should go after BAE, Ferrostaal, Giesecke & Devrient, Daimler and any others involved in such practices. But they won't, because Germany's preeminence in foreign trade would suffer.
19:26 May 16, 2010 by wenddiver
The US Government should mind it's own business and leave Daimler-Benz alone.
21:02 May 16, 2010 by Prufrock2010
As long as Daimler-Benz does business in the U.S., their corrupt business practices are the business of the United States government. That's one of the prices of doing business in the United States. I know that's a difficult concept for you to grasp, but that's what laws are for.

As I sometimes had to tell obtuse clients, I can explain it to you but I can't understand it for you. As a multinational investor, I'm sure you'll be able to figure it out eventually.
09:55 May 17, 2010 by chimpansi
low trading volume?? thats a joke..

with this they accept that they cant do business without bribing. what a shame!! who knows they bribed for safety results as well!!

these companies bribe and make sure that money is hidden in swiss banks which then comes to germany indirectly!!

I guess someone should get behind this recyling of sh*t story. We are in for lot of surprises..
11:56 May 17, 2010 by Hebbellover
@Prufrock2010 you are correct, they don't want the scrutinty of their business practices. As for the silly argument that American companies are not immune, well, all I have to say is that we aren't talking about American companies. We are talking about a German corporation that has extensive ties to the middle east.
18:54 May 17, 2010 by Prufrock2010
That's true. It's impossible to sell all those Mercedes to those pesky oil rich Arabs without greasing some palms here and there. Too bad it's illegal.
18:39 May 18, 2010 by Henckel
That's correct. In some parts of the world, businesses have to follow standard operating procedures that would not stand up to scrutiny in the USA or Germany.
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