D(C) pays $650m to dump Chrysler

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Spam away - 14 May 2007 18:19 GMT

http://money.cnn.com/2007/05/14/news/companies/chrysler_sale/index.htm?se
ction=money_topstories

Daimler pays to dump Chrysler
German automaker will end up actually paying $650 million to unload
Chrysler to end its exposure to billions in ongoing losses, healthcare
costs.
By Chris Isidore, CNNMoney.com senior writer
May 14 2007: 11:53 AM EDT

NEW YORK (CNNMoney.com) -- DaimlerChrysler moved to undo the most
expensive and one of the least successful mergers in auto industry
history Monday as it agreed to essentially pay to dump the money-losing
Chrysler unit which it paid $37 billion for nine years ago.

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Lloyd - 18 May 2007 21:56 GMT

> http://money.cnn.com/2007/05/14/news/companies/chrysler_sale/index.ht...
> ction=money_topstories
[quoted text clipped - 10 lines]
> history Monday as it agreed to essentially pay to dump the money-losing
> Chrysler unit which it paid $37 billion for nine years ago.

Now I don't understand the "paid $37 billion" that's been bandied
about. To whom did they pay it? I was a Chrysler stockholder. I got
249 shares of DaimlerChrysler stock in exchange for, I believe it was,
400 shares of Chrysler. I got no money. I got stock valued at
roughly what my Chrysler stock was valued at before the merger. DBAG
stockholders also got DC stock, valued at what their DBAG stock was
valued at before the merger. How did $37 billion change hands?

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