German government at odds over stake in tank maker KNDS, Handelsblatt reports
Disagreements within the German coalition on KNDS stake
BERLIN, May 7 (Reuters) - Plans for the German government to take a stake in Franco-German defence firm KNDS may not go ahead due to disagreements within the coalition, Handelsblatt reported on Thursday citing a government document and unnamed sources.
Government’s objectives and unresolved issues
Berlin aims to secure a pre-IPO stake in the tank maker to safeguard national security interests and maintain influence alongside France. However, key questions remain open, including the size and structure of any state participation, according to the report.
Stake size preferences among ministries
The defence ministry is said to favour a stake of around 40%, while the economy ministry and the chancellery are pushing for closer to 30%, the report said.
Official responses from ministries and KNDS
The German economy ministry declined to comment due to the ongoing nature of the discussions with the company, but said it was still considering an investment "to safeguard key defence industry technologies."
KNDS did not immediately respond to a request for comment. The French defence ministry declined to comment.
IPO timeline and constraints
France and KNDS are reportedly insisting on proceeding with an initial public offering next month, leaving a narrow window for any agreement.
Government’s position on post-IPO entry
The report added that an entry after the IPO is not currently seen as an option within the government.
Contributors
(Writing by Friederike Heine and Linda Pasquini, additional reporting by Makini Brice and Christian Kraemer, editing by Kirsti Knolle)
