|
Daimler details merger terms
|
 |
August 6, 1998: 11:04 a.m. ET
DaimlerChrysler changes share ratio; Eaton to get stock worth $66.2 million
|
NEW YORK (CNNfn) - Daimler-Benz AG said Thursday it has changed the exchange ratio for its shareholders regarding its proposed merger with Chrysler Corp.
In a statement filed with the Securities and Exchange Commission, Daimler-Benz said shareholders will receive 1.005 DaimlerChrysler shares for each Daimler-Benz share, up from a one-to-one share exchange ratio, if the 90-percent minimum condition in DaimlerChrysler's exchange offer is satisfied.
The exchange ratio for Chrysler shareholders remains unchanged at 0.6235.
Daimler shareholders will own 58 percent of the new company while Chrysler shareholders will own 42 percent, according to the regulatory filing.
The companies also said DaimlerChrysler will issue one class of ordinary shares that will trade worldwide. Chrysler shareholders will receive DaimlerChrysler ordinary shares instead of DaimlerChrysler American depositary receipts, as previously planned.
Daimler's Juergen Schrempp and Chrysler's Robert Eaton will be co-chief executives and co-chairmen of DaimlerChrysler's management board. Under terms of the merger, Eaton will receive shares worth $66.2 million after the merger is completed.
The companies also said Eaton would receive a lump-sum severance payment of $24.4 million if he were to be fired from his position within two years after the merger.
In May, Daimler-Benz announced its plans to merge with Chrysler in a $38-billion deal. The companies' shareholders are expected to vote on the merger in separate meetings Sept. 18.
Chrysler (C) shares fell 1/4 to 56-7/16 in early trading. Daimler-Benz (DAI) ADRs fell 3/16 to 97-11/16. 
|
|
|
|
|
|
Chrysler
Daimler-Benz
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
