DETROIT — Daimler said it signed a binding agreement Monday to give up its 19.9 percent remaining stake in Chrysler and pay as much as $600 million into the automaker’s pension fund.
The deal, once completed, means the relationship between Daimler and Chrysler will be terminated except for supplier and customer relations — including limited support for dealer financing until the end of September. The remaining 19.9 percent stake will be turned over to Chrysler’s parent, Cerberus Capital Management.
The move allows Cerberus and Chrysler to intensify their negotiations to reach a merger deal with Fiat SpA by Thursday. Chrysler needs the Fiat merger — along with cost concessions from its debt holders and the United Auto Workers — by that deadline in order to receive more U.S. federal aid and avoid bankruptcy.
Chrysler and Cerberus also agreed to waive any claims that might arise from the Aug. 3, 2007, sale of Chrysler to Cerberus.
The UAW will own 55 percent of a restructured Chrysler LLC and its retiree health care trust will get a seat on the board if union members vote to approve contract concessions this week. Chrysler stock could even be traded publicly again, as there are mechanisms for the UAW to sell shares to fund the health care trust.
Daimler will report a charge of about $700 million in the second quarter to cover the costs of the Chrysler pension payments.
Daimler chief executive Dieter Zetsche told the company’s shareholders earlier this month at the annual general meeting that talks with Cerberus over a sale of the German automaker’s remaining stake in Chrysler were ongoing, but described the private-equity firm’s demands as unacceptable.
Daimler reduced the book value of its Chrysler stake to zero last year.
