STUTTGART, Germany, June 17 /PRNewswire-FirstCall/ -- For the further
optimization of Daimler's capital structure, the Board of Management of the
company decided to carry out a new share buyback program. The Supervisory
Board of Daimler AG has approved this decision.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080409/NYW017LOGO )
In exercise of the authorization granted by the Annual Meeting of April 9,
2008, the decision of the Board of Management allows for the buyback of 10% or
approximately 96.4 million of the outstanding shares for a maximum amount of
euro 6 billion. In order to optimize the buyback, shares may also be acquired
with the use of derivatives.
Daimler's capital structure is to be further optimized with the goal of
reducing the use of equity capital, which is more expensive than debt capital.
This will avoid investment decisions being limited by excessively high capital
costs.
The share buyback program will be carried out on the stock exchange,
whereby derivatives may also be traded outside the stock exchange.
The Board of Management decision limits the period of the share buyback
until the Annual Meeting on April 8, 2009.
The shares acquired will later be cancelled without any reduction in
Daimler's share capital. It will also be possible to use some of the shares to
serve stock option plans.
In line with the decision by the Board of Management, the share buyback
will be managed by a bank, which will make its decisions on the timing of
individual share purchases and the use of derivatives independently and
without any influence from Daimler AG.
The company started its first share buyback program at the end of August
2007. By March 28, 2008, 99.8 million shares had been bought back euro 6.2
billion.
The technical details of the share buyback program are as follows:
In accordance with the authorization granted by the Annual Meeting, the
price paid by Daimler AG for each share (excluding transaction costs)
purchased through the stock exchange may not be more than 5% higher or lower
than the price determined at the opening of Xetra trading at the Frankfurt am
Main Stock Exchange.
With the possible use of derivatives, according to the resolution of the
Annual Meeting, the price paid by the company for options may not be
substantially higher and the sale price received by the company may not be
substantially lower than the theoretical market value of the options
calculated using recognized financial mathematical methods, whereby the agreed
exercise price is one of the factors to be taken into consideration.
The derivatives used (stock options) may not be applied for the
acquisition of more than 5% of the share capital as of April 9, 2008.
The exercise price of the options (excluding transaction costs, but taking
into consideration the option bonus received or paid) may not be more than 10%
higher or lower than the average closing price in Xetra trading at the
Frankfurt am Main Stock Exchange on the last three days of trading before the
conclusion of the respective option transaction.
Information on the share buyback program will be disclosed as the buyback
proceeds at www.daimler.com/ir.
Further information from Daimler is available on the internet at:
www.media.daimler.com
This document contains forward-looking statements that reflect our current
views about future events. The words "anticipate," "assume," "believe,"
"estimate," "expect," "intend," "may," "plan," "project," "should" and similar
expressions are used to identify forward-looking statements. These statements
are subject to many risks and uncertainties, including an economic downturn or
slow economic growth in important economic regions, especially in Europe or
North America; the effects of the subprime crisis which could result in a
weaker demand for our products particularly in the U.S. but as well in the
European market; changes in currency exchange rates and interest rates; the
introduction of competing products and the possible lack of acceptance of our
products or services; price increases in fuel, raw materials, and precious
metals; disruption of production due to shortages of materials, labor strikes
or supplier insolvencies; a decline in resale prices of used vehicles; the
business outlook for Daimler Trucks, which may be affected if the U.S. and
Japanese commercial vehicle markets experience a sustained weakness in demand
for a longer period than expected; the effective implementation of cost
reduction and efficiency optimization programs; the business outlook of
Chrysler, in which we hold an equity interest, including its ability to
successfully implement its restructuring plans; the business outlook of EADS,
in which we hold an equity interest, including the financial effects of delays
in and potentially lower volumes of future aircraft deliveries; changes in
laws, regulations and government policies, particularly those relating to
vehicle emissions, fuel economy and safety, the resolution of pending
governmental investigations and the outcome of pending or threatened future
legal proceedings; and other risks and uncertainties, some of which we
describe under the heading "Risk Report" in Daimler's most recent Annual
Report and under the headings "Risk Factors" and "Legal Proceedings" in
Daimler's most recent Annual Report on Form 20-F filed with the Securities and
Exchange Commission. If any of these risks and uncertainties materialize, or
if the assumptions underlying any of our forward-looking statements prove
incorrect, then our actual results may be materially different from those we
express or imply by such statements. We do not intend or assume any obligation
to update these forward-looking statements. Any forward-looking statement
speaks only as of the date on which it is made.
About Daimler
Daimler AG, Stuttgart, with its businesses Mercedes-Benz Cars, Daimler
Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses, is a
globally leading producer of premium passenger cars and the largest
manufacturer of commercial vehicles in the world. The Daimler Financial
Services division has a broad offering of financial services, including
vehicle financing, leasing, insurance and fleet management. Daimler sells its
products in nearly all the countries of the world and has production
facilities on five continents. The company's founders, Gottlieb Daimler and
Carl Benz, continued to make automotive history following their invention of
the automobile in 1886. As an automotive pioneer, Daimler and its employees
willingly accept an obligation to act responsibly towards society and the
environment and to shape the future of safe and sustainable mobility with
groundbreaking technologies and high-quality products. The current brand
portfolio includes the world's most valuable automobile brand, Mercedes-Benz,
as well as smart, AMG, Maybach, Freightliner, Sterling, Western Star,
Mitsubishi Fuso, Setra, Orion and Thomas Built Buses. The company is listed on
the stock exchanges in Frankfurt, New York and Stuttgart (stock exchange
abbreviation DAI). In 2007, the Group sold 2.1 million vehicles and employed a
workforce of over 270,000 people; revenue totaled euro 99.4 billion and EBIT
amounted to euro 8.7 billion. Daimler is an automotive Group with a commitment
to excellence, and aims to achieve sustainable growth and industry-leading
profitability.
SOURCE Daimler AG
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