Mannheim, February 12, 2007 — Shearman & Sterling advised DaimlerChrysler on reaching an agreement with a consortium of private and public-sector investors by which DaimlerChrysler will reduce its shareholding in European Aeronautic Defence and Space Company (EADS) from 22.5% to 15%, while maintaining the balance of voting rights between Germany and French controlling shareholders.  DaimlerChrysler has therefore placed its entire 22.5% equity interest in EADS into a new company, in which the consortium of investors will acquire a one-third interest through a special-purpose entity.  As a result, this relates to a stake of 7.5% in EADS.  The transaction volume amounts to €1.5 billion.

DaimlerChrysler will continue to control the voting rights of the entire 22.5% package of EADS shares.

The following Shearman & Sterling lawyers advised DaimlerChrysler on this transaction: partners Jochem Reichert, Thomas Liebscher, Stephan Harbarth (all M&A/Corporate-Mannheim) and Hans Jürgen Meyer-Lindemann (Antitrust-Düsseldorf), Of Counsel Christian Guilluy (M&A-Paris) as well as associates Marc Löbbe, Michaela Balke, Nicolas Ott, Dominik Mues (all M&A/Corporate-Mannheim) and Mathias Stöcker (Antitrust-Düsseldorf).

For additional information contact:
Marcus Brans | Düsseldorf | T +49.211.17888.907 |