U.S. court rejects Kerkorian appeal - Daimler

Court Alerts

[##_1L|1177592853.jpg|width="130" height="93" alt=""|_##]A U.S. federal court has upheld a lower court ruling that investor Kirk Kerkorian is not entitled to damages over the merger of Daimler-Benz and Chrysler nine years ago, DaimlerChrysler said on Wednesday. "DaimlerChrysler is pleased to announce that the Court of Appeals for the Third Circuit has unanimously affirmed the trial court's judgment dismissing Tracinda's complaint relating to the 1998 merger of Daimler-Benz and Chrysler," the company said.

Kerkorian's Tracinda investment vehicle was not immediately available for comment.

The lower court ruled in 2005 that Kerkorian had not been misled into believing the $36 billion deal was a merger of equals as the two partners had claimed.

A DaimlerChrysler spokesman said the verdict would not have any financial consequences because the company had not set aside any money in case it lost the case. It had, however, made reserves for its legal fees and court costs, he added.

DaimlerChrysler shares rose 1.4 percent to 66.79 euros by 0941 GMT, lagging a 2.1 percent gain in the DJ Stoxx European car sector index.

The transatlantic linkup between Daimler-Benz and Chrysler was one of the biggest deals in automotive history, but never lived up to its potential and was unwound this year when Chrysler was sold to buyout firm Cerberus Capital Management.

Kerkorian was Chrysler's leading shareholder when it signed the deal that former Chief Executive Juergen Schrempp boasted would form the world's first truly global carmaker.

Kerkorian, who had demanded more than $1 billion in damages, contended that Schrempp only billed the deal as a merger of equals to lower the transaction price and avoid paying shareholders a "control premium".

Related listings

  • Mexican drug lord pleads guilty in US court

    Mexican drug lord pleads guilty in US court

    Court Alerts 09/19/2007

    [##_1L|1046923081.jpg|width="120" height="88" alt=""|_##]A notorious Mexican drug lord faces life in prison after admitting to running the feared Tijuana cartel in a US court on Monday, justice officials said. Francisco Javier Arellano-Felix, 39, wil...

  • Ex-Navy Clerk Pleads Guilty in Gun Case

    Ex-Navy Clerk Pleads Guilty in Gun Case

    Court Alerts 09/19/2007

    [##_1L|1289572253.jpg|width="101" height="102" alt=""|_##]A former Navy supply officer pleaded guilty Tuesday to illegally possessing 60 unregistered machine guns that were found at his rural home. David Carmel told U.S. District Judge John C. Shabaz...

  • TGIP Gets $156 Million Verdict In AT&T Patent Suit

    TGIP Gets $156 Million Verdict In AT&T Patent Suit

    Court Alerts 09/18/2007

    [##_1L|1342245909.jpg|width="120" height="93" alt=""|_##]Top U.S .phone company AT&T Inc said on Monday that it was ordered to pay $156 million after losing a jury verdict in a patent infringement case brought by TGIP Inc. Separately, Verizon Com...

New Rochelle, New York Personal Injury Lawyers

If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read