For better, worse, or indifferent, the whole question of whether Daimler 'stole' Chrysler is going to be settled in court, beginning today.
Mr. Kerkorian has requested in his lawsuit that the DaimlerChrysler merger deal be unwound. It should be fascinating to see what happens; it appears the judge has resisted all motions for summary dismissal.
Read all about it here:
"In August, DaimlerChrysler agreed to settle with the other shareholders for $300 million. But Kerkorian, who held about 14 percent of Chrysler's shares at the time of the merger, has refused to settle and is seeking as much as $3 billion in damages.
His lawsuit also asks U.S. District Judge Joseph J. Farnan Jr. to unwind the deal -- an improbable scenario but one that raises the ante in the case. "
... "If the run-up to the trial is any indication, there will be dramatic testimony about a controversial tape recording, destroyed documents and surreptitious corporate maneuverings that are rarely made public. Several of the key witnesses have been ordered to testify, including Schrempp, former Chrysler Corp. Chairman Robert Eaton, DaimlerChrysler Chief Financial Officer Manfred Gentz and former Chrysler President James Holden. Kerkorian is expected to be one of the first witnesses.
The trial is expected to last about three weeks, but the verdict will be hard to predict.
A judge, not a jury, is hearing this case, so there will be no closing arguments or nail-biting deliberations."
...
`"You could argue that Chrysler got a good price" for its shareholders "considering what has happened" since the merger, said David Cole, a longtime Chrysler shareholder and director of the Center for Automotive Research in Ann Arbor. Cole said he believes Chrysler needed a partner like Daimler-Benz, and that there is always a dominant partner in a merger. '
....
Wow.
--Geoff