FRANKFURT, Aug 22 (Reuters) - DaimlerChrysler AG confirmed on Friday that it was talking to five investors about the sale of its aero-engine business MTU, a defence supplier the German government would prefer to remain in German hands.
"We are in talks with five partners, but the talks are still at an early stage," DaimlerChrysler spokesman Hartmut Schick said, adding that the handful of interested parties did not include a German bidder.
Schick said, however, that DaimlerChrysler was interested in finding a European solution and was certain that the German government would find that acceptable.
The government has grown increasingly concerned about defence technology falling into foreign hands after submarine builder HDW was sold to a U.S. investor last year.
Sources familiar with the matter told Reuters earlier this month that the autos giant had received a handful of bids for MTU Aero Engines, which is part of a consortium chosen to build engines for Europe's new Airbus military transporter.
U.S. private equity firms Kohlberg Kravis & Roberts (KKR), the Carlyle Group, the Blackstone Group and British buyout firm Doughty Hanson all put in bids that could value MTU at about 1.5 billion euros ($1.64 billion), the sources said then.
Company sources said on Friday that DaimlerChrysler was expecting to raise 1.5 billion euros from the MTU sale.