Wednesday, July 11, 2007

German Stocks Fall, Led by DaimlerChrysler; Hypo Real Rallies

By Henrietta Rumberger and Daniela Silberstein

July 11 (Bloomberg) -- Germany's benchmark DAX Index slid for a second day, paced by DaimlerChrysler AG after speculation there could be a delay in the sale of the unprofitable Chrysler division.

Concern mounting U.S. mortgage losses will damp growth in the world's biggest economy pushed banking stocks lower. Hypo Real Estate Holding AG surged after it raised its 2007 profit forecast.

The DAX declined 66.22, or 0.8 percent, to 7898.54 as 28 stocks fell and 2 advanced. DAX futures expiring in September slipped 1 percent to 7959 at 5:41 p.m. in Frankfurt. The HDAX Index of the country's 110 biggest companies lost 0.8 percent.

DaimlerChrysler tumbled 1.06 euros, or 1.6 percent, to 67.36 euros. The world's fifth-largest carmaker said there's no delay in the sale of the unprofitable Chrysler division amid trader concern that financing of the transaction hit a roadblock.

``There is no indication of a delay from our side,'' Thomas Froehlich, a company spokesman, said in a telephone interview. He said closure on the deal is still expected in the third quarter. Peter Duda, a spokesman for Cerberus Capital Management LP, which is buying Chrysler, also said the deal will close in the third quarter, as scheduled.

``This morning a rumor Cerberus might have problems financing the Chrysler acquisition was doing the rounds, but I think the strong euro is behind today's losses,'' said Oliver Schmidt, a trader at Landesbank Rheinland-Pfalz in Mainz, Germany.

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