Pre-merger fact sheet of companines:-
CHRYSLER CORPORATION FACT SHEET:-
Chrysler Corporation is a multi-billion dollar U.S. based company involved in the manufacturing and selling of cars, minivans, sport-utility vehicles and trucks for customers worldwide. Its mission is to produce cars and trucks that people will want to buy, will enjoy driving and will want to buy again.
FOUNDED: June 6, 1925, a Delaware corporation
HEADQUARTERS: Auburn Hills, Michigan, USA
EMPLOYMENT: 122,000 worldwide (1997)
MAJOR BRANDS: Chrysler/Plymouth, Jeep(R) and Dodge/Dodge Truck vehicles
TOTAL SALES/REVENUES: $61.1 billion (1997)
VEHICLES SOLD: 2,864,329 cars, minivans, light trucks and ...view middle of the document...
5*124 = $ 186 billion
The two companies are a perfect ﬁt of two leaders in their respective markets. Both companies have dedicated and skilled workforces and successful products, but in different markets and different parts of the world.
By combining and utilizing each other’s strengths, we will have a pre-eminent strategic position in the global marketplace for the beneﬁt of our customers. We will be able to exploit new markets, and we will improve return and value for our shareholders. This is a historic merger that will change the face of the automotive industry. This is much more than a merger; today we are creating the world’s leading automotive company for the 21st century. We are combining the two most innovative car companies in the world.
(Chairman of the Daimler-Benz Management Board)
On May 7, 1998, Daimler-Benz of Germany announced plans to merge with Chrysler Corporation. It was the largest international merger in history. Jürgen Schrempp of Daimler-Benz and Robert Eaton of Chrysler had signed the agreement the day before in London. The combined entity is called DaimlerChrysler AG and is incorporated under the jurisdiction of the Federal Republic of Germany.
The merger will be accomplished through exchange offer and merger transactions in which stockholders of both companies will become stockholders of the new company.
* Daimler-Benz stockholders will hold one share of DaimlerChrysler for each Daimler-Benz share they now own.
* Chrysler stockholders will receive 0.547 of a DaimlerChrysler share for each Chrysler share they now own.
* The final ratio will be adjusted to reflect the special pay-out and capital increase transaction of Daimler-Benz scheduled for June 1998.
* The transaction is expected to be tax-free for both companies and their shareholders, and is currently planned to be accounted for as a pooling-of-interests.
* Chrysler shareholders will hold approximately 43 percent of the new company
* Daimler-Benz shareholders will hold approximately 57 percent.
DaimlerChrysler shares and ADSs will trade on all the same exchanges as do the Daimler-Benz shares and ADSs, including the Frankfurt Stock Exchange and the New York Stock Exchange. The transaction has been approved by the Chrysler Board of Directors and the Daimler-Benz Board of Management.
Credit Suisse First Boston is advising Chrysler, and Daimler-Benz is being advised by Goldman Sachs and Deutsche Bank.
Various researchers have looked for the source of the gains from mergers
and evidence exists that mergers can create value by reducing taxes, increasing
productivity, improving incentives, or creating synergies
The Chrysler Board unanimously approved the merger and recommended the
transaction as fair to and in the best interests of Chrysler’s stockholders. The
board suggested several factors that led to its approval:
* the likelihood that the...