Mercedes 1999 Annual Report Download - page 90

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4. DISPOSITIONS
Due to an initial public offering in March 1999 as well as to the
selling of a substantial portion of its remaining interests in Sep-
tember 1999, debis AG, a wholly-owned subsidiary of
DaimlerChrysler, reduced its remaining interest in debitel AG to
10 percent (see Note 9).
In March 1998, the Group’s semiconductor business was sold to an
American company, Vishay Intertechnology, Inc. Also, during 1998
the Group sold further interests, including the sale of 30% of its in-
terests in LFK-Lenkflugkörpersysteme GmbH and 100% of its inter-
ests in CMS, Inc. and two real-estate-project-companies. The total
pretax gain from these dispositions was approximately €300.
In January 1997, DaimlerChrysler sold its interests in AEG
Electrocom GmbH and AEG ElectroCom International, Inc. (sorting
and recognition systems) to Siemens AG resulting in a pretax gain
of €110.
In July 1997, debis AG terminated its strategic relationship with
Cap Gemini Sogeti S.A. through the sale of its 24.4% interest re-
sulting in a pretax gain of €420.
During December 1997, DaimlerChrysler completed an initial pub-
lic offering (“IPO”) of its common stock in Dollar Thrifty Automo-
tive Group, Inc. (“DTAG”), formerly Pentastar Transportation
Group, Inc., for net proceeds of €343. The IPO of the common stock
interest resulted in a pretax and after-tax gain of €65. The gain
was deferred and will be recognized over the remaining term of
the vehicle supply agreements with DTAG, which end in 2001. The
tax effect on this transaction reflects the difference between the
book and tax basis of the Group’s stock interest in DTAG for which
deferred taxes were not provided, in accordance with SFAS 109,
“Accounting for Income Taxes.” In addition, the 1997 earnings in-
clude the recognition of €86 (€53 after taxes) of previously de-
ferred profits from the sale of vehicles from DaimlerChrysler to
DTAG.
84