Terms of the DaimlerChrysler Deal

7 May 1998

• Daimler-Benz shareholders will get one share of DaimlerChrysler stock for every share of Daimler-Benz stock they currently own, while Chrysler shareholders will reap an exchange ratio of 0.547 shares of DaimlerChrysler stock per each share of Chrysler stock.
• Daimler-Benz has submitted a special dividend to it's shareholders for approval. If that dividend gets approved, Chrysler shareholders will get 0.62 shares of DaimlerChrysler for each Chrysler share. Chrysler shareholders will own 43% of the new company.
• The merger deal (on Thursday) valued Chrysler stocks at $58 per share. Chrysler closed at 48 and 11/16 per share on Wednesday evening.
• The companies expect the merger to cut $1.4 billion out of their combined production costs in the first year; they expect to see $3 billion in savings over the next several years.
• DaimlerChrysler Executives said they plan no plant closings or layoffs.
• The company will maintain headquarters in Germany and Michigan. It will incorporate in Germany and organize according to a traditional German structure, establishing separate supervisory and management boards.
• DaimlerChrysler expects to have $92 billion in market value and to earn an estimated $130 billion yearly. Those figures still rank it below Ford, GM, Toyota, and Volkswagen. The new company will become the fifth-largest automaker in the world.