DaimlerChrysler shares to begin trading next week Issue timed to coincide with merger's start-up

Auto industry

November 10, 1998|By BLOOMBERG NEWS

STUTTGART, Germany -- DaimlerChrysler AG shares will begin trading Nov. 17, the day Daimler-Benz AG and Chrysler Corp. start operating as a single German company, as Daimler-Benz works to complete its $36 billion takeover of the No. 3 U.S. automaker.

Daimler-Benz said about 98 percent of shareholders have voluntarily swapped their shares for DaimlerChrysler stock, ensuring that the acquisition will go ahead and enabling the new company to use favorable "pooling of interest" accounting.

The deadline to swap shares was Friday, including a grace period of 10 working days mandated by the U.S. Securities and Exchange Commission.

Daimler-Benz hopes to draw from Chrysler's experience in the lower end of the car market, while generating cost-savings from the combination.

DaimlerChrysler will be the world's fifth-largest carmaker, as Chrysler is now. It will have a global market share of about 7.5 percent.

Pub Date: 11/10/98

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