[Chrysler300] Sale Pending

[Guyztoys <guyztoys@xxxxxxx>]

Being a long-time stockholder in Chrysler, I have been watching this thing very closely.
First off, the news media keeps putting out that Daimler Benz Paid 38 billion or so for Chrysler at the time of the merger. Daimler DID NOT PAY ANYTHING for Chrysler. That figure represents the value of the stock conversion when both corporations were dissolved and DC was hatched. Daimler Benz could never have come up with 38 billion cash.

The press keeps referring to Chrysler as "troubled" or "beleaguered" because they lost 1.6 billion in 2006.
They have conveniently forgotten that a couple of years previous to this, it was  Chrysler that was holding up profits when the Mercedes side was bleeding red ink.

At the time of the merger, DB had a market capitalization of about 72 billion and Chrysler had a market cap of about 62 billion. Chrysler had a war chest of about 7-9 billion and DB had an amount somewhat the same. This was not a case of the strong buying out the weak. Chrysler stockholders voted 97.5% to 2.5% in favor of the merger. I, of course was in the minority. I felt from the beginning that DB wanted to take over. They are not inclined to foster equal footing with a company they feel is beneath them. They simply wanted to control them and add them to their portfolio of diverse companies. At the time, Chrysler was more profitable than DB to boot.

Things went down hill fast because Bob Eaton did not look out for the interests of the Chrysler side.
I won't say that he purposely sold out, but it looks that way.

Daimler got top billing in the new name
Germany was the headquarters
For each share of Chrysler stock you got about 1/2 share of DC as compared to getting 1 share of DC stock for 1 share of DB stock
They took almost a billion dollars of Chrysler cash and basically handed it out to the Chrysler top officials if they would leave -- giving Bob Eaton a 200 million dollar parachute. They slowly whittled down the Board of Directors to almost no one on the Chrysler side. This allowed the Daimler side to fully take over the store.

Therefore, any amount they receive for Chrysler would be gravy.


Guy Morice


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