Daimler Must Allow Schrempp Tape In Merger Suit

LONDON, England February 28, 2003; Margret Cronin Fisk writing for Bloomberg reported that a London court ordered the release of a taped interview with DaimlerChrysler AG Chief Executive Officer Juergen Schrempp that may help shareholders win their fraud suit over the 1998 purchase of Chrysler by the German automaker.

Shareholders say the tape will prove that DaimlerChrysler, the world's fifth-largest carmaker, lied to investors in describing the transaction as a "merger of equals." Schrempp had disputed the accuracy of a transcript of the 2000 interview with the Financial Times, which quoted him as saying he always intended to control Chrysler and operate it as a unit.

Investors had asked the court to force release of the tape of the interview. Schrempp had refused to give the newspaper permission to turn over the tape.

"We are gratified by the decision of the High Court of Justice, which overcomes Mr. Schrempp's effort to suppress full disclosure of the interview," Tracinda Corp., Chrysler's largest shareholder, said in a statement.

The London court ordered the tape released, except for a small 70-word off-the-record portion. The court said that the excised portion would not adversely affect the plaintiffs' case against DaimlerChrysler.