One of DaimlerChrysler’s large shareholders is still lobbying for a spin-off of Chrysler. The investment firm, DWS, wants the disposal of the American unit to be considered along side current plans to cut 10,000 workers and use more Mercedes product development and parts sourcing to save money.
Any outside shareholder concerned about Daimler’s overall plans has not looked at a chart of the stock price. DCX shares are at $64. They have not been near that level in the last five years.
Why shareholders think Chrysler is worth more as a separate company is something of a puzzle. DCX shares trade at over .3x revenue. GM’s (GM) trade at below .1x. A standalone Chrysler would probably have a valuation multiple well below Daimler’s and its is unclear that the parent’s shares would rise considerably if Chrysler was gone.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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