DaimlerChrysler Loses Bid to Dismiss Merger Lawsuit - "A Merger Of Equals" Is the Question - Watch Complete Merger Press Conference - See Background TV Shows - Hear What Milton Snide Has To Say.

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CHICAGO November 21, 2003; Ann Keeton writing for Dow Jones reports that a U.S. district court judge on Friday denied a summary judgment filed by DaimlerChryler AG , paving the way for an investor group's lawsuit against the auto maker to go forward.

With the ruling by Judge Joseph J. Farnan in Wilmington, Del., the suit brought by billionaire investor Kirk Kerkorian will go to trial on Dec. 1.

DaimlerChrysler had hoped to show that plaintiff's claim wasn't legally valid.

Mr. Kerkorian, the biggest shareholder in U.S. auto maker Chrysler Corp. when it merged with Germany's Daimler-Benz in 1998, said Daimler-Benz misrepresented its intentions to shareholders, calling the deal a "merger of equals", while planning a takeover of Chrysler.

If the deal had been called a takeover, Chrysler shareholders could have asked for more money, Mr. Kerkorian contended.

DaimlerChrysler and Mr. Kerkorian reached an agreement in 1998 that a judge would decide any disagreements between them.

In his ruling Friday, Judge Farnan noted evidence that defendant Juergen Schrempp, head of DaimlerChrysler, said in a 1998 meeting that he "intended the transaction to be a takeover, despite his representations to the contrary."

In August, DaimlerChrysler agreed to pay $300 million to settle a class-action suit filed by institutional investors who also claimed they got paid less because Daimler misrepresented the transaction. DaimlerChrysler agreed to the settlement, but denied the accusation.

DaimlerChrysler's told the judge the plaintiff, Tracinda Corp., Mr. Kerkorian's investment company, couldn't prove its case because it relied on " alleged oral misrepresentations" by Mr. Schrempp.

In his ruling Friday, Judge Farnan wrote that "Tracinda's evidence demonstrates that defendants mounted a full-scale communications campaign aimed at concealing their intent to take control of Chrysler and pressing the 'merger of equals' concept.

"In addition to Schrempp's public statements in the Financial Times and Barron's, Tracinda has offered evidence that the defendants launched a study code-named "Project Blitz" to analyze the feasibility of acquiring Chrysler," the judge wrote.

"In connection with this study, defendants hired and met with several financial analysts and bankers who opined that an acquisition of Chrysler would be 'significantly accretive" to Daimler shareholders," the judge wrote. " Tracinda has also offered evidence suggesting that defendants knew that an acquisition would not be well-received by Chrysler shareholders, that a merger of equals would fare better, and that it was important for 'market psychology' that the participants in the merger publicly emphasize that this was a merger of equals and not a buy-out."

Snide's Remarks: A Merger of equals? Come on...just ask anyone who who works in Auburn Hills if this was a merger of equals...Chrysler became a German Company...run the German way...run from across the sea. Some of my sources have told me that disagreements have ended in fist-a-cuffs...that's right grown men beating the shit out of each other over a business decision...Way to Go Your Honor...let a jury hear the evidence...if only more judges felt the same way instead of playing God.