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EXHIBIT 99.1
R-1324 CONTACT: Dan McEnroe
Treasurer
313/592-7344
E-Mail Address: [email protected]
DETROIT DIESEL ANNOUNCES MERGER AGREEMENT WITH DAIMLERCHRYSLER AG
TRANSACTION VALUED AT $23.00 PER SHARE
FOR IMMEDIATE RELEASE:
DETROIT, MICHIGAN, JULY 20, 2000 -- Detroit Diesel Corporation (NYSE: DDC)
announced today the signing of a definitive merger agreement with a subsidiary
of DaimlerChrysler AG (DaimlerChrysler). Under the terms of the merger
agreement, DaimlerChrysler, a shareholder of DDC since 1993 that currently owns
21.3% of the outstanding common shares of DDC, will commence a cash tender offer
for the remaining 78.7% of DDC at a price of $23.00 per common share for a total
transaction value of $423 million. Penske Corporation, which currently owns
48.6% of the outstanding common shares of DDC, has committed to tender its
shares to DaimlerChrysler.
The agreement, which is subject to customary conditions, provides for the merger
of a subsidiary of DaimlerChrysler into DDC following the completion of the
tender offer. The board of directors of DDC has approved the tender offer and
the merger.
According to Roger S. Penske, Chairman, "This transaction is an
important step in the continued growth of DDC. As we look at the competitive
environment, and the consolidation activity occurring within our industry, this
merger will provide strength and stability for DDC in the future. The management
team of DDC, including myself, remains committed to DDC and its continued
success. We also see this as a tremendous opportunity for our employees and
customers to be more closely associated with a company as innovative and
customer-focused as DaimlerChrysler. Furthermore, the current DDC brand-named
products will continue to be offered broadly in the marketplace."
"In the worldwide truck market, the engine is one of the most important
competitive elements in terms of customers' economic requirements as well as to
meet emission standards. Therefore, this step continues DaimlerChrysler's
strategy of building its worldwide leadership in diesel engines and enables us
to offer an integrated truck product in every major market across the globe",
added Dieter Zetsche, board member responsible for commercial vehicles.
The proposed acquisition is subject to approval by the antitrust
authorities of the U.S. and the European Union. It is anticipated that the
transaction will be completed by the fall of 2000.
Detroit Diesel Corporation is engaged in the design, manufacture, sale
and service of heavy-duty diesel and alternative fuel engines, automotive diesel
engines, and engine-related products. The company offers a complete line of
diesel engines from 22 to 10,000 horsepower for the on-highway, off-road, and
automotive markets. Detroit Diesel services these markets directly and through a
worldwide network of more than 2,800 authorized distributor and dealer
locations. DDC is a QS-9000 certified company.
Detroit Diesel's major shareholder is Penske Corporation, a
closely-held, diversified transportation services company whose operations
include Penske Truck Leasing Company, Diesel Technology Company, Penske
Automotive Group, Inc., Penske Auto Centers, Inc., and Penske Capital Partners,
L.L.C. Penske Corporation and its subsidiaries manage and operate businesses
with annual revenues exceeding $10 billion and employ more than 34,000 people
around the world.
Investors and security holders are strongly advised to read both the
tender offer statement and the solicitation/recommendation statement regarding
the tender offer referred to in this press release, when they become available
because they will contain important information. The tender offer statement will
be filed by DaimlerChrysler with the Securities and Exchange Commission (SEC),
and the solicitation/recommendation statement will be filed by Detroit Diesel
with the SEC. Investors and security holders may obtain a free copy of
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these statements (when available) and other documents filed by DaimlerChrysler
and Detroit Diesel at the SEC's website at www.sec.gov.
The tender offer statement and related materials may be obtained for
free by directing such requests to DaimlerChrysler North America Holding
Corporation. The solicitation/recommendation statement and such other documents
may be obtained by directing such requests to Detroit Diesel Corporation.
FOR MEDIA ONLY: Complimentary copies of Detroit Diesel's recent press
releases are available at Company News On-Call: http://www.prnewswire.com or
call 1-800-758-5804 ext 239425.
Detroit Diesel's World Wide Web address is http://www.detroitdiesel.com
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