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DaimlerChrysler facing $8 billion lawsuit

DaimlerChrysler is facing court action in the US from one of its largest shareholders concerning the merger of Daimler-Benz and Chrysler two years ago.

According to the Financial Times Tracinda Corporation, led by billionaire Kirk Kerkorian, filed a lawsuit against the company claiming Daimler-Benz executives gave misleading information about the merger.

The accusations concern statements made in the press recently by Jurgen Schrempp, DaimlerChrysler chairman, that Chrysler was always meant to have become a division of the German firm rather than a merger partner.

Tracinda, which owns about 4% of the merged car company, is understood to be seeking damages and compensation and is asking the US district court to order the restoration of Chrysler as an independent company.

DaimlerChrysler denies Chrysler was ever meant to be an equal partner and has vowed to fight the action.

Since the merger the value of Tracinda's stock in DaimlerChrysler has fallen by more than half. Jim Holden was also more recently removed as Chrysler president.



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