July 26, 2017 / 8:46 AM / in 5 months

BUZZ-German auto empire break-up idea re-emerges after Daimler comment

** German truck and cars maker Daimler’s comment on separate legal entities prompts Evercore analyst to discuss break-up potential again

** Deutsche Bank, Evercore ISI talked up Daimler and Volkswagen break-up earlier this year

** In Q2 earnings conf call, Daimler CFO says co is reviewing company structure and may legally separate some divisions

** “This was a deliberate new statement from management,” Evercore ISI analyst Arndt Ellinghorst says

** “Shareholders would applaud such moves... spinning Daimler’s and VW’s trucks divisions could unlock a combined €55bn in shareholder value, c40% of their combined market cap”

** Deutsche in June pointed to successes U.S. firms have had with spinoffs, citing Delphi Automotive’s powertrain business spin off, Fiat Chrysler disposal of Ferrari and GM announcement to sell Opel

** DB had said the positive share reaction post those spin-offs might tempt European execs into action

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