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Daimler set for Mitsubishi
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March 24, 2000: 7:04 a.m. ET
$1.2B deal for 33% of Japanese auto firm likely Monday
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LONDON (CNNfn) - Auto giant DaimlerChrysler is due to unveil its acquisition of a significant stake in Japan's Mitsubishi Motors Monday, according to industry sources.
A news conference has reportedly been set for Monday in Stuttgart, the home of the world's fifth-largest automaker. DaimlerChrysler was widely reported to be acquiring a 33 percent holding in Mitsubishi, Japan's fourth-largest auto firm, worth some $1.2 billion. A Daimler spokesman could not immediately be reached for comment Friday.
 A one-third holding in Mitsubishi would be a significant strategic step for Daimler, making it the firm's largest shareholder and giving the German-U.S. outfit the right to veto board decisions at Mitsubishi.
Such a move would be similar to last year's acquisition by France's Renault (PRNO) of a minority stake in Nissan Motor. The French firm lost no time in sending in a team of executives to slash costs at the ailing Japanese manufacturer.
Should the Daimler/Mitsubishi deal go ahead it would leave Honda and Toyota as the sole independent players among Japan's top five carmakers. Ford (F: Research, Estimates) controls fifth-ranked Mazda.
Mitsubishi would round out global expansion plans at DaimlerChrysler, lifting the company into third place in the worldwide rankings, behind U.S. rivals General Motors (GM: Research, Estimates) and Ford.
DaimlerChrysler (FDCX) stock rose 2.3 percent by midday in Frankfurt Friday. 
-- from staff and wire reports
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