UPDATE 1-Daimler, another German blue chip to abandon NYSE

* Very weak volumes means added costs are not justified

* Trading on NYSE was lower than 5 pct threshold

* Daimler CFO claimed on April 27 had no such plans

(Adds details, background)

FRANKFURT, May 14 (BestGrowthStock) – Two weeks after denying it had
any such plans, Daimler (DAIGn.DE: ) is dropping its listing on
the New York Stock Exchange, making it the second major German
blue chip to do so in the past month.
Daimler said advances in electronic trading made since its
initial 1993 listing in New York meant U.S. investors mainly
sought the greater liquidity offered by its Frankfurt listing
when buying or selling shares, leaving interest to trade in New
York shares (DAI.N: ) too weak to justify the added costs.

“The trading volumes with Daimler shares in the USA were
consistently too low — over the past twelve months on average
it amounted to considerably less than 5 percent of our global
volume,” the carmaker said in a statement on Friday, adding it
would formally apply for the delisting in the near term.

“The goal is to reduce the complexity as well as the
administrative costs and fees in the financial reporting,”
Daimler explained, saying the decision came from the management
and supervisory boards.

Its U.S. dollar denominated bond maturing on Jan. 18, 2031,
will also be delisted from the New York Stock Exchange (NYSE)
and trade over-the-counter.


One key requirement for foreign companies looking to delist
from NYSE is providing data that shows trading volumes have
fallen below the 5 percent threshold.

A spokesman for Daimler said 17 percent of its shares are
held by U.S. investors.

Previously, German insurer Allianz (ALVG.DE: ), chemical group
BASF (BASF.DE: ), drugmaker Bayer (BAYGn.DE: ), and utility E.ON
(EONGn.DE: ) all delisted from NYSE.

Deutsche Telekom (DTEGn.DE: ) cited added expenses of 10-20
million euros per year as reason to decide on April 21 to pull
its listing in the U.S., leaving at the time just five German
blue chips still listed on the Big Board.

When asked during a quarterly conference call held on April
27 whether Daimler was considering following Telekom’s lead, CFO
Bodo Uebber faltered a bit when replying.

“From a listing point of view, we have- we have, nothing is
planned. I have seen what Deutsche Telekom has done, and of
course we’ve- so, nothing more than this,” he said.

As soon as Daimler is delisted, only software giant SAP
(SAP.N: ), Deutsche Bank (DB.N: ), industrial conglomerate Siemens
(SI.N: ) and dialysis specialist Fresenius Medical Care (FMS.N: )
will still have listings on NYSE.

Investment Analysis

(Reporting by Christiaan Hetzner)

UPDATE 1-Daimler, another German blue chip to abandon NYSE