Ok Ron, we know you have nothing better to do ...... hehehehe Thanks
Something to stick the finger at: meaning SCHREMPP.
-------------------------------------------
Steven St.Laurent
Test Engineer
Test Branch, GSD, MCTSSA
MARCORSYSCOM, USMC
760-725-2506 (DSN 365-2506)
Work:mailto:stlaurents@mctssa.usmc.mil
Home:mailto:saint1958@home.com
-----Original Message-----
From: Ronald Wong [mailto:ron-wong@home.com]
Sent: Monday, November 27, 2000 3:31 PM
To: dakota-truck@BUFFNET.NET
Subject: DML: RE: NEWSFLASH: Investor Sues DC... Claims Shrimp Lied to
Investors...
DETROIT (AP) - Billionaire investor Kirk Kerkorian filed a $9 billion
lawsuit Monday against DaimlerChrysler AG, accusing chairman Juergen
Schrempp of falsely telling Chrysler shareholders that the 1998 combination
with Daimler-Benz was a "merger of equals."
The suit, filed in Delaware by the Kerkorian-owned Tracinda Corp., is the
latest trouble to beset the once-vaunted merger between the two auto
manufacturers, one of the biggest industrial combinations in history.
Since the November 1998 deal, several top Chrysler officials have quit or
been fired and the stock has plunged nearly 55 percent from its post-merger
high set in early 1999.
The Los Angeles-based Tracinda, which Kerkorian uses to control his
investments, said in a statement that it is seeking to unwind the $34
billion deal. It claims that it would have never voted for the merger if it
had been presented as a takeover of Chrysler by the Stuttgart, Germany-based
company.
Kerkorian, who launched a hostile takeover bid for the Auburn Hills-based
Chrysler in 1995 that led to a seat on Chrysler's board, is
DaimlerChrysler's third-largest individual shareholder with about 4 percent
of its shares. At the time of the merger, he was Chrysler's largest
shareholder with 13.75 percent of its shares.
"To close one of the largest transactions in the history of the automotive
industry, defendants Daimler-Benz AG and DaimlerChrysler AG blatantly lied
to all concerned in a scheme masterminded by defendant Juergen Schrempp,"
the complaint said.
In a statement, DaimlerChrysler AG said the allegations "appear to be
completely without merit," but said it had not yet seen the lawsuit and
declined further comment.
Tracinda cited comments Schrempp made recently to the Financial Times that
the then-chairman of Daimler-Benz never intended DaimlerChrysler to be a
merger of equals, but instead secretly planned to make Chrysler a division
of the German parent company.
"Defendants always intended to relegate Chrysler to the status of a
division, always intended to fire Chrysler's management and always intended
to replace them with executives from their headquarters in Stuttgart,"
Kerkorian's complaint said.
"Mr. Schrempp knew that Chrysler's directors and shareholders would never
approve a transaction if he told the truth, namely, that a foreign
corporation was seeking to acquire complete operating control of one of
America's 'Big Three."'
Analyst David Healy with Burnham Securities said, however, there were clear
signs that the deal was not a merger of equals when both boards approved it.
The majority of shareholders were German, and Eaton promised to give up his
title as co-chairman within three years.
"Kerkorian was an enthusiastic supporter" of those terms, Healy said. "To
me, it was never a merger of equals."
In an Oct. 30 Financial Times interview, Schrempp is quoted as saying there
was no need to keep pretending that the deal was designed as a merger of
equals.
"The structure we have now with Chrysler (as a division) was always the
structure I wanted," he said. "We had to go a roundabout way but it had to
be done for psychological reasons. If I had gone and said Chrysler would be
a division, everybody on their side would have said: 'There is no way we'll
do a deal."'
Kerkorian is seeking more than $2 billion in actual damages, $1 billion in
damages for the drop in value of the DaimlerChrysler shares since the merger
and punitive damages of at least $6 billion. Tracinda also said it "seeks to
unwind the transaction so that Chrysler will once again be an independent
corporation owned by Chrysler shareholders."
More than a dozen senior Chrysler executives have resigned, retired, or been
forced out since the deal was finalized. On Nov. 17, Chrysler president
James Holden was fired by Schrempp and replaced by Dieter Zetsche, a veteran
Mercedes-Benz executive.
Besides Daimler-Benz, DaimlerChrysler and Schrempp, the suit filed in U.S.
District Court in Delaware also names as defendants Manfred Gentz, the
company's chief financial officer, and Hilmar Kopper, the chairman of its
supervisory board.
Before the merger, Kerkorian was often at odds with Chrysler management over
the direction of the company, culminating with a $23 billion bid in 1995 to
buy Chrysler. That bid failed, but in return for peace Kerkorian was given a
seat on Chrysler's board.
Since the merger, the value of DaimlerChrysler's shares has dropped
steadily, reaching an all-time low of $37.90 after Holden's ouster and
Zetsche's appointment earlier this month.
Chrysler posted a $512 million loss in the third quarter this year, as it
boosted incentives to move a glut of minivans and other vehicles. Schrempp
had said that Chrysler would post a profit in the fourth quarter, but the
company has since said that Chrysler's results have continued to
deteriorate.
Shares finished trading Monday at $41.50, up $1.02 on the New York Stock
Exchange.
Ron
00 SLT QC 4X2 5.9 46RE 3.92 LSD
For modifications see my DML Profile
-----Original Message-----
From: owner-dakota-truck@BUFFNET.NET
[mailto:owner-dakota-truck@BUFFNET.NET]On Behalf Of Kenneth Berntsen
Sent: Monday, November 27, 2000 3:26 PM
To: 'DAKOTA-TRUCK@BUFFNET.NET'
Subject: DML: NEWSFLASH: Investor Sues DC... Claims Shrimp Lied to
Investors...
Just heard it on the radio news segment. Maybe some one can find the whole
story on the net some where.
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