BERLIN, Aug 21 (Reuters) - German Economy Minister Wolfgang Clement said on Thursday Berlin would like DaimlerChrysler AG's MTU aero engines unit to remain in German hands, as a newspaper quoted a company spokesman as saying that was unlikely.
But in an interview with Reuters, Clement said planned legislation giving the government a veto over foreign takeovers of German defense companies was not aimed at individual cases, indicating the government could be powerless to stop an MTU sale.
"We are not creating a law to cover individual cases, but a general law in line with the constitution," Clement said. "As far as MTU is concerned, I hope this very important company remains in German hands."
He said he hoped the law giving the government the power to veto takeovers to be in force by the end of this year or the beginning of 2004. A text would be presented soon, he said.
The Passauer Neue Presse newspaper on Thursday quoted a DaimlerChrysler spokesman as saying it was unrealistic to expect to find a German partner for MTU, but the company would still speak with the government before any sale to a foreign firm.
In an advance copy of an article due to be published on Friday, the newspaper quoted the spokesman as saying that the company favored a "European solution" and this would not be excluded even if MTU were first sold to a U.S. buyer.
A DaimlerChrysler spokesperson was not immediately available to comment on the report. Its investor relations department declined to comment.
Defense industry sources have said DaimlerChrysler is close to picking a buyer for MTU, which is part of a consortium chosen to build engines for Europe's new Airbus military transporter.
The list of reported bidders is dominated by U.S. buyout specialists, including the Carlyle Group, which is in the process of acquiring 70 percent of Fiat SpA's Avio aviation unit.
Passauer Neue Presse cited the DaimlerChrysler spokesman as saying it was first talking with United Technologies Corp.'s Pratt & Whitney unit, which cooperates with MTU in some projects, before opening concrete negotiations with MTU bidders.