GERMANY: DaimlerChrysler settles train unit sale dispute
DaimlerChrysler has agreed a settlement with Bombardier Inc. and its subsidiary Bombardier Transportation (Holdings) Germany GmbH resolving all disputes in connection with the sale of DaimlerChrysler Rail Systems GmbH (Adtranz) to Bombardier in 2001.
DaimlerChrysler sold Adtranz to Bombardier on April 30, 2001 for a preliminary purchase price of $US725 million. Due to the arbitration proceedings thus far, DaimlerChrysler has not realised €300 million of the purchase price, which had been fully paid. €300 million was accounted for as deferred gain.
The settlement provides for a purchase price adjustment in favour of Bombardier of €170 million. On the basis of the settlement, a realization of the deferred gain of €130 million is possible. All other claims of Bombardier have been withdrawn. Claims raised by Bombardier in arbitration proceedings filed with the International Chamber of Commerce in Paris in July 2002 amounted to about €960 million.