[In other words, Chrysler's profits were actually $1 billion less than reported:]
Chrysler execs could reap $1 bln in shrs -WSJ
NEW YORK, May 13 (Reuters) - Chrysler executives could
collect shares in the new DaimlerChrysler AG with a value of more
than $1 billion as their stock options are converted into shares
early, the electronic edition of the Wall Street Journal reported
Wednesday.
Under German corporate law, where the new company will be
registered, options are not provided for and that forces the
executives to exercise their options into new shares of
DaimlerChrysler, the Journal said.
The paper cited documents filed with the U.S. Securities and
Exchange Commission, saying Chrysler chairman Robert Eaton "could
see more than $100 million in DaimlerChrysler stock."
The value of Eaton's stake is based, the Journal said, on
analysts' expectations that the merger values Chrysler's shares
at about $61 each.
"According to the companies' SEC filing, existing Chrysler
options will be converted into DaimlerChrysler shares based on
their current spread, the difference between the current market
price of Chrysler shares and the price on the option, plus a two
percent premium," the paper said.
Under the merger agreement, executives will be allowed to
sell these shares immediately, after the deal is completed, the
journal said.
Additionally, any of Chrysler's top 30 executives who lose a
job in the next two years due to the merger would receive a
multimillion dollar "golden parachute."
Chrysler agreed to merge with Germany's Daimler-Benz AG
on May 7.
Chrysler's stock closed at $51 down $1.50 on the New York
Stock Exchange Tuesday.
((New York Newsdesk 212-859-1700; Fax 212-859-1717)) |
