Judge To Rule In DaimlerChrysler Merger Suit

FRANKFURT, Nov 7, 2003; Reuters reported that DaimlerChrysler said on Friday a U.S. judge, rather than a jury, would decide on the lawsuit between the automaker and billionaire investor Kirk Kerkorian about the 1998 merger.

"The judge has decided he and not a jury will rule on the case," a spokesman for DaimlerChrysler said.

The decision may favour the automaker as juries tend to favour individuals rather than big corporates, although it is unclear how much sympathy a jury would have for the wealthy businessman.

Kerkorian, whose company Tracinda owned 13 percent of Chrysler before the merger with Daimler-Benz, is suing the world's fifth-biggest carmaker, claiming that the 1998 deal was billed as a merger of equals rather than a takeover to keep the price down.

The investor filed the suit after DaimlerChrysler chief executive Juergen Schrempp told the Financial Times that he had always meant to relegate Chrysler to a division of the group.

It is still unclear if the suit will go to court or whether the judge will make a summary judgement, but a trial date has been set of December 1.

In August, DaimlerChrysler said it would settle with a separate regroup of disgruntled former Chrysler investors for $300 million and this was approved by a U.S. federal juidge in October.