Business Case Studies & Business Publications

Daimler-Benz A.G.: Negotiations Between...

Bruner, Robert F.,...

Case

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

Bruner, Robert F.; Spekman, Robert E.; Christmann, Petra; Kannry, Brian; Davies, Melinda

F-1241 | Published October 1, 1998 | 45 pages Case

Collection: Darden School of Business

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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.