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Chrysler, Daimler in Merger Talks

May 6, 1998

STUTTGART, Germany (AP) _ The Germany luxury automaker Daimler-Benz and Chrysler Corp., the No. 3 automaker in the United States, are in talks about a possible merger, the companies confirmed Wednesday.

Industry sources estimated the purchase price at $35 billion.

Daimler stocks surged 8 percent on the German stock exchange after the merger talks were confirmed in a joint statement issued from Daimler headquarters in Stuttgart.

Daimler is Germany’s largest industrial group.

Daimler’s board was also expected to consider the merger this week. Chrysler’s directors have a regularly scheduled board meeting Wednesday.

Last year there was market talk about a merger between Chrysler and BMW, another German luxury car maker. BMW is currently bidding for Britain Vickers PLC’s Rolls-Royce Motor Cars.

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