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Chrysler Corporation: Negotiations between Daimler and Chrysler

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

This case may be taught singly or used as a merger-negotiation exercise with “Daimler-Benz A. G.: Negotiations between Daimler and Chrysler” (UVA-F-1241). Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.

Keywords

Citation

Bruner, R.F., Spekman, R.E., Christmann, P., Kannry, B. and Davies, M. (2017), "Chrysler Corporation: Negotiations between Daimler and Chrysler", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000069

Publisher

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University of Virginia Darden School Foundation

Copyright © 1998 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.