Daimler, Chrysler urge share tenders, push for S&P 500 listing after merger
Article Abstract:
Chrysler Corp., the US-based automaker, and Germany-based Daimler-Benz AG are seeking tenders from a high percentage of Daimler-Benz stockholders so that they can get financially positive accounting treatment for their merger. The companies are also asking that DaimlerChrysler AG be included in Standard & Poor's 500-stock index. The merger needs only a tender of a minimum of 75% of Daimler shares for shares of DaimlerChrysler but it would be more advantageous under the US accounting treatment if at least 90% is tendered. The latter case would classify the merger under 'pooling-of-interests' accounting, which means that the merged company need not deduct from future earnings premium paid beyond the fair market value of assets in the deal.
Comment:
Seeks tenders from high percentage of Daimler stockholders to gain favorable accounting treatment for merger with Chrysler
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
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U.S. ruling backs Daimler-Chrysler deal
Article Abstract:
Daimler-Benz AG of Germany and Chrysler Corp. of the US hurdled one obstacle to their proposed merger after the US Internal Revenue Service cut the minimum number of Daimler-Benz shares to be exchanged in the merger from 80% to 75%. The favorable ruling is one of the deal's pre-conditions, said Chrysler. Daimler-Benz and Chrysler are hoping to attain a 90% level of subscription from Daimler-Benz shareholders for shares in the merged company to be able to use the pooling-of-interests method in accounting for the merger. That method is deemed favorable to the company and shareholders.
Comment:
Hurdles one obstacle to proposed merger with Daimler-Benz after receiving favorable ruling from US Internal Revenue Service
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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