Judge Strikes Down Daimler Argument

Highlights from the article:

DETROIT (Reuters) - A U.S. judge on Wednesday struck down part of DaimlerChrysler DCX.N DCXGn.DE call for the dismissal of multibillion-dollar lawsuits over the merger that formed the company, saying investors could not reasonably have suspected the so-called "merger of equals" was a takeover.

In his ruling, Delaware District Court Judge Joseph Farnan chided DaimlerChrysler for its claim that media speculation about the deal between Daimler-Benz AG and Chrysler Corp. was sufficient to put Chrysler shareholders on alert, especially in view of repeated company statements to the contrary.

The shareholder lawsuits contend that Daimler-Benz planned and executed a takeover of Chrysler in 1998 but used the "merger of equals" language to get the deal done at a cheaper price.

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