The court’s verdict forces Daimler to change the exchange ratio from 20 percent of the Daimler dividend per old AEG share to 34.5 percent of the Daimler dividend. The profit and loss transfer agreement between the former Daimler-Benz AG and AEG AG, signed in 1988, called for an exchange ratio of 5 AEG shares for one old Daimler-Benz share.
That agreement was modified with the court’s ruling that the proper exchange rate is 2.9 AEG shares for one old Daimler-Benz share.
„From today’s perspective, the court’s verdict will result in a maximum obligation for Daimler to supply 4.3 million Daimler shares and a maximum amount of 150 million euros in cash for dividends and compensation payments,” the German group says in a release.
„The actual amount will depend, however, upon how many claims are made by eligible former AEG shareholders. Daimler has recognized provisions in its balance sheet to satisfy the claims, but the provisions are now being reviewed once again for the year-end financial statements.”
From the share buyback program carried out in 2008, Daimler currently holds 37.1 million own shares, which were originally acquired for redemption without reducing the share capital and also to serve the stock option plan.