Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Hailed as one of the biggest mergers of 1998, the $36 billion marriage of Daimler-Benz AG and the Chrysler Corporation might not have been a merger after all. In August, U.S.-German automotive giant DaimlerChrysler AG agreed to pay Chrysler shareholders $300 million to settle allegations that Daimler-Benz had misrepresented its 1998 deal with Chrysler as a merger of equals rather than a takeover. The shareholders, a group of four pension funds with major stakes in Chrysler, had filed suit against DaimlerChrysler in federal district court in Wilmington. The pension funds alleged that DaimlerChrysler chairman J�rgen Schrempp misled shareholders to avoid paying them their rightful share price. In a merger of equals, shareholders receive a lower premium than that paid in a takeover. Accordingly, when the two companies combined in 1998, Chrysler shareholders received $57.50 per Chrysler share instead of the almost $63 they would have received in a takeover, says a lawyer for the plaintiffs. DaimlerChrysler maintains that the plaintiffs were not defrauded. The car maker has faced two other suits over this issue. One, brought by a separate, individual investor, settled for an undisclosed sum. The other, brought by billionaire investor Kirk Kerkorian’s Tracinda Corporation, is pending, with a trial set for December 1. For plaintiff investors Grant & Eisenhofer (Wilmington): Jay Eisenhofer, Geoffrey Jarvis, and associates Cynthia Collins, Richard Donaldson, Kirby Happer, and Abbott Leban. (Donaldson is now at Montgomery, McCracken, Walker & Rhoads; Happer is now a contract attorney.) Grant & Eisenhofer is one of the regular securities counsel for the Florida State Board of Administration, a pension fund plaintiff in this suit. Entwistle & Cappucci (New York): Vincent Cappucci, of counsel Stephen Oestreich, and associates Arndt Lutz and Johnston Whitman. Cappucci and Eisenhofer were co-lead counsel on a previous Florida State Board of Administration matter. Bernstein Litowitz Berger & Grossmann (New York): Daniel Berger, Darnley Dickinson Stewart, and senior counsel Rochelle Feder Hansen. Bernstein Litowitz has a long-standing relationship with the Policemen’s Annuity and Benefit Fund of Chicago and the Municipal Employees’ Annuity and Benefit Fund of Chicago, two of the pension fund plaintiffs. Barrack, Rodos & Bacine (Philadelphia): Jeffrey Golan, Gerald Rodos, and associates Jeffrey Barrack and David Robinson. The firm represented the Florida State Board of Administration in previous litigation, and has long-standing relationships with the other three plaintiffs. For defendant DaimlerChrysler AG (Stuttgart, Germany) In-house: Executive vice president and general counsel William O’Brien III, vice president, associate general counsel, and secretary Richard Houtman, and vice president and general counsel � DaimlerChrysler Europe/Africa/Asia Peter Waskonig. O’Brien and Houtman are in the company’s Auburn Hills, Michigan, office, and Waskonig is in Stuttgart. Skadden, Arps, Slate, Meagher & Flom (New York): Thomas Allingham II, Lea Haber Kuck, Jonathan Lerner, Joseph Sacca, Robert Saunders, J. Michael Schell, counsel Gerhard Gnaedig, and associates Michael Barlow, Stephen Dargitz, Shira Franco, Norah Gottfried, Gary Hacker, Jacob Hollinger, Stefan Koch, Darryl Parson, Kathrin Popow, Antoine Tinnion, and Linda Wayner. (All are in Skadden’s New York office except Allingham, Saunders, Barlow, Dargitz, and Parson, who are in Wilmington, and Koch and Popow, who are in Frankfurt.) Schell, an M&A partner, has done previous work for DaimlerChrysler, and before that for Daimler-Benz.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.