The end of Lauda Watch? This could be it folks, maybe Lauda watch will be no more. Today Reuters report that Damiler-Benz has severed all ties with Aabar investments who sponsor Lauda’s cap at $500,000 a year. Not only have they acquired Aabar’s 40% of the F1 team but also the 9% holding the Abu Dhabi sovereign fund had invested in Damiler-Benz the global car manufacturer.
Aabar have lost over $2bn by trying to be clever and underpin the Daimler-Benz acquisition with a derivatives deal which went wrong. They have in effect lost their shirt and the banks that funded the deal have retained the stock, which by the way is worth double the price Aabar paid for it.
