Monday, August 21, 2006

DCX Case Regarding Merger Comes To A Close

August 21, 2006

According to the Associated Press, DCX has been ordered by a German Court to pay $295,000,000 to former shareholders.

Article Excerpt:

German Court Rules on DaimlerChrysler 08.21.2006, 10:50 AM

DaimlerChrysler AG must pay about $295 million to former shareholders of Daimler-Benz AG to settle a case related to its 1998 merger with Chrysler Corp., a court said Monday. The automaker must pay a group of investors euro22.15 ($28.42) per share, or a total of euro230 million, to resolve the dispute over the valuation of their stock, said Till Jakob, a spokesman for the state court in Stuttgart.

DaimlerChrysler spokesman Thomas Froehlich said the court had not yet informed the company of the decision, but added: "We consider the additional payments inappropriate and will probably appeal." During the 1998 merger, 1.8 percent of Daimler-Benz shares were exchanged involuntarily for shares in the merged company. Some shareholders claimed that the exchange ratio used undervalued their shares, and they launched court proceedings in 1999.

Interested SSG readers can catch the whole story HERE via Forbes.com