Merger of equals: Daimler-Benz and Chrysler, Kerkorian trial in 2003
Five years ago Daimler-Benz and Chrysler merged to form Daimler-Chrysler. On December 1, 2003, a trial began in Wilmington, Delaware in which Kirk Kerkorian, a large Chryler shareholder at the time of the merger, is seeking $1 billion to $2 billion damages from Daimler-Chrysler. The New York Times said: "Not since John and Horace Dodge sued Henry Ford in 1916 have such prominent shareholders confronted a captain of the auto industry in court." The apparent heart of the case lies in the term "merger of equals." Do a little on-line research on this case. Then write a short paragraph that delineates the key financial attribute of a "merger of equals" and describes the basis for Kerkorian's claim.
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Solution Preview
A merger of equals is a merger that combines two businesses, as opposed to one firm acquiring the other.
Kerkorian, a Las Vegas casino billionaire and tycoon who is seeking at least 1.2 billion dollars in damages, has contended ...
Solution Summary
The solution debates if it was it a merger of equals, or a secret takeover.