Daimler Chrysler fraud claim.

[Steve_Perry]

linky

2/12/2003

Former Chrysler shareholder Kirk Kerkorian accused Daimler-Benz of fraud yesterday, as his lawsuit against the German conglomerate opened in Delaware. Billionaire octogenarian investor Kerkorian had owned 13.7 percent of Chrysler prior to the $36billion 1998 merger with Daimler-Benz, and is suing DaimlerChrysler for $3billion, claiming that the merger was misrepresented as an alliance of equals, rather than a takeover of Chrysler, and he and other shareholders are due a takeover premium, as well as compensation for the fall in their shares' value after the takeover. As Chrysler's largest shareholder, he says he would not have approved the deal if it had been presented as a takeover.

Kerkorian's attorney cited an interview published in the FT in 2000 with DaimlerChrysler chairman Jurgen Schremmp, in which Schremmp says that the aim all along had been to take Chrysler over to form a division of Daimler-Benz. He also claims that most former Chrysler board members were promptly fired or forced to resign, with just one American to be left on the now almost exclusively German DaimlerChrysler board by the end of this year. Defence lawyers, however, argued in return by questioning Kerkorian's motives, saying that the investor is simply seeking compensation for having held on to his Chrysler shares for too long, and retribution for the company's refusal to buy his 89 million shares back when their stock price tumbled. Kerkorian made $3billion nonetheless when he sold his Chrysler shares. Expect the accusations to fly over the coming days. (Detroit News)

Looks like 'Captain Kirk' wasn't happy with his $3bn

S.

 

[Flyer]

Originally posted by Steve_Perry
[Looks like 'Captain Kirk' wasn't happy with his $3bn

S.

As I was reading it, that's what I was thinking Steve .

What was that line from Wall Street?:

Bud Fox: How much is enough?

Gordon Gekko: It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.

(Sorry, I did cheat ).