Daimler-Benz A.G.: Negotiations between Daimler and Chrysler

Abstract

This case may be taught singly or used as a merger-negotiation exercise with “Chrysler Corporation: Negotiations between Daimler and Chrysler” (UVA-F-1240). 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.

Citation

Bruner, R.F., Spekman, R.E., Christmann, P., Kannry, B. and Davies, M. (2017), "Daimler-Benz A.G.: Negotiations between Daimler and Chrysler", . https://doi.org/10.1108/case.darden.2016.000082