Hong Kong/Beijing — Daimler has rebuffed an offer from China’s Geely to take a stake of up to 5% via a discounted share placement due to long-held reluctance to see existing shareholdings diluted, people with knowledge of the discussions said. A stake of that size would be worth as much as $4.5bn at market prices. The two car makers met in Beijing in recent weeks at Geely’s behest. There, the Chinese firm, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3% and 5% if Daimler would issue new shares at a discount, the people said. The German group declined the offer but told Geely, which also owns Swedish car maker Volvo, it was welcome to buy shares in the open market, they said. It was not immediately clear if Geely is interested in that option. People with knowledge of Geely’s thinking said the company’s plans for a tie-up with Daimler included establishing a joint venture to produce electric cars and that it was hopeful it could still secure a dea...
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