(Corrects attribution in 3rd paragraph to show statement is a paraphrase rather than a direct quote.)

April 5 (Bloomberg) -- Germany's DAX Index dropped, paced by Deutsche Lufthansa AG after HVB Group sold a 14.1 million-euro stake in Europe's second-biggest airline.

Linde AG slipped after UBS AG cut the industrial gas maker's share recommendation, citing ``bad timing'' in its takeover of U.K. rival BOC Group Plc.

``We don't think it's quite the heavenly match at the operational level that management asserts,'' said Thomas Gilbert, a London-based UBS analyst, who added Linde is paying a high price and the timing is bad as interest rates are rising.

The benchmark DAX Index dropped 10.99, or 0.2 percent, to 6002.86 as of 11:38 a.m. in Frankfurt, the second straight decline. DAX June futures also declined 0.2 percent, as did the HDAX Index of the country's 110 biggest companies.

Lufthansa dropped 1.7 percent to 14.73 euros, the most in more than 2 months. HVB, the German lender bought by UniCredit SpA last year, sold 9.5 million shares for 14.80 euros apiece, or about 2 percent of the airline's outstanding shares, HVB spokesman Knut Hansen said.

Linde AG, which plans to take over U.K. rival BOC Group Plc, fell 1.1 percent to 69.31 euros after UBS cut the company's stock recommendation to ``reduce'' from ``neutral'' on concern about the timing, costs and financing of the purchase.

DaimlerChrysler AG gained 1.7 percent to 48.84 euros. The world's fifth-biggest automaker plans to sell a stake in European Aeronautic, Defense & Space Co. valued at 2 billion euros ($2.45 billion).

DaimlerChrysler said yesterday it will sell a 7.5 percent stake in EADS next year after the aerospace company's shares increased more than five-fold in the past three years. DaimlerChrysler advanced.

``Clever move,'' said Stefan Bauknecht, who manages 1.2 billion euros at Frankfurt-based DWS Investment. DaimlerChrysler Chief Executive Officer Dieter Zetsche ``is showing that he's serious about increasing profitability.''

The following stocks also rose or fell in the German market. Stock symbols are in parentheses.

Depfa Bank Plc (DEP GY), Europe's second-largest public- finance provider, rose 1.9 percent to a record 15.75 euros, gaining for a second day. Depfa shares climbed 6.6 percent yesterday after Handelsblatt newspaper reported the company is getting takeover inquiries. The report cited an interview with Chief Executive Officer Gerhard Bruckermann. Depfa spokesman Henrik Hannemann later confirmed the comments.

Ersol Solar Energy AG (ES6 GY), a maker of solar cells, climbed 4.6 percent to 58.30 euros. Earnings before interest and taxes will rise to as much as 30 million euros this year, the company said in a statement today. It previously forecast earnings by that measure of more than 20.2 million euros.

Nordex AG (NDX1 GY) rose 3.6 percent to 9.55 euros. The windmill maker increased its full-year sales forecast by 15 percent as soaring power prices spur new orders. Earnings before interest and taxes will rise to 13.8 million euros, spokesman Ralf Peters said by phone today. Nordex previously forecast earnings of 10 million euros for 2006.

To contact the reporter on this story: Chris Fournier in Frankfurt at Cfournier3@bloomberg.net.

Last Updated: April 5, 2006 06:10 EDT