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Chrysler is mailing Out-of-court settlement docs to shareholders

I'm looking at a set of documents that have been mailed out a week or two ago to DC shareholders.

Basically, the proposal is that DC will make a cash payout of $300 million (USD) to DCX shareholders based on a set of rules. About 95% of the settlement will be paid out to DCX shares that were Chrysler shares before the merger and the other 5% will be paid out to DXC shares bought between the merger date (Nov 13/1998) and Nov 17/2000. (not sure what is significant about Nov 17/2000 but Schrempp's "takeover" statement to the Financial Times was made on Oct 27/00).

If all shares participate then this works out to 48 cents for each Chrysler share that was converted to DCX share.

The lawyers will ask for 22.5% of the settlement amount plus another $4 million for specified expenses. It is projected that combined these fees will be 11 cents per share, effectively making the settlement amount to be 37 cents per share.

There is a multi-page schedule attached to the document titled "Lead Plaintiff's contention of estimated inflation-per-share table". It shows the actual-price, true-price, and daily inflation value of Chrysler/DCX shares on each trading day from Nov 13/98 ($79.5) to Nov

17/00 ($42.85). I'm not sure what the point of this table is. (at some point there was a reverse-split - anyone know the details?)

Anyways, in order to participate in the settlement the shareholder must fill out the enclosed form and return it along with proof of ownership of said shares by March 31/2004.

BTW - Is the existance and circulation of this settlement an indication that Kerkorian has agreed to these terms? Or is Chrysler just trying to buy off as many shareholders as it can before the verdict with Kerkorian? And if the majority of shareholders return their forms does that mean Kerkorian's suit is automatically quashed?

Reply to
MoPar Man
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I'm looking at a set of documents that have been mailed out a week or two ago to DC shareholders.

Basically, the proposal is that DC will make a cash payout of $300 million (USD) to DCX shareholders based on a set of rules. About 95% of the settlement will be paid out to DCX shares that were Chrysler shares before the merger and the other 5% will be paid out to DXC shares bought between the merger date (Nov 13/1998) and Nov 17/2000. (not sure what is significant about Nov 17/2000 but Schrempp's "takeover" statement to the Financial Times was made on Oct 27/00).

If all shares participate then this works out to 48 cents for each Chrysler share that was converted to DCX share.

The lawyers will ask for 22.5% of the settlement amount plus another $4 million for specified expenses. It is projected that combined these fees will be 11 cents per share, effectively making the settlement amount to be 37 cents per share.

There is a multi-page schedule attached to the document titled "Lead Plaintiff's contention of estimated inflation-per-share table". It shows the actual-price, true-price, and daily inflation value of Chrysler/DCX shares on each trading day from Nov 13/98 ($79.5) to Nov

17/00 ($42.85). I'm not sure what the point of this table is. (at some point there was a reverse-split - anyone know the details?)

Anyways, in order to participate in the settlement the shareholder must fill out the enclosed form and return it along with proof of ownership of said shares by March 31/2004.

BTW - Is the existance and circulation of this settlement an indication that Kerkorian has agreed to these terms? Or is Chrysler just trying to buy off as many shareholders as it can before the verdict with Kerkorian? And if the majority of shareholders return their forms does that mean Kerkorian's suit is automatically quashed?

Reply to
MoPar Man

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