MARCH 3, 2003
Uh-oh, here comes Kerkorian
American billionaire Kirk Kerkorian was very upset back in 1998 when he believes the shareholders of the Chrysler Coprotaion were misled by Daimler-Benz chairman Jurgen Schrempp. Kerkorian was so upset in fact that he has sued the senior management of Daimler Chrysler in November 2000, claiming that the supposed "merger of equals" was always going to be a Daimler-Benz takeover of Chrysler. Kerkorian was later joined by other investors. Kerkorian claims that investors were deliberately misled by Schrempp and others.
In recent days Kerkorian's lawyers have been granted an order to make the Financial Times hand over a tape-recording of an interview with Schrempp in which he allegedly admitted Chrysler was always destined to be a division of the enlarged group.
The case will be decided by a court in Delaware in the United States. DaimlerChrysler says it is confident that it will win the case but Kerkorian seems confident as well and defeat for Schrempp could be disastrous for his career.
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