German Government Faces Internal Disputes Over KNDS Stake Before IPO
Coalition Disagreements Threaten Pre-IPO Stake Plans
Background on the KNDS Stake Proposal
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.
National Security and Influence Concerns
Berlin had aimed 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.
Debate Over Size and Structure of Stake
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.
IPO Timeline and Negotiation Window
France and KNDS are reportedly insisting on proceeding with an initial public offering next month, leaving a narrow window for any agreement.
Post-IPO Entry Not Favoured
The report added that an entry after the IPO is not currently seen as an option within the government.
Stakeholder Responses and Next Steps
Germany's finance and economy ministries and KNDS did not immediately respond to emailed requests for comment.
(Writing by Friederike Heine, editing by Kirsti Knolle)
