WILMINGTON, DEL. Ex-Chrysler chief explains notes during trial

An investor's lawsuit is back in court after a long break.
WILMINGTON, Del. (AP) -- Former Chrysler president Thomas Stallkamp testified Monday that notes on his letterhead expressing concerns about the company's merger with DaimlerBenz were simply part of plans to answer potential questions about the deal.
Stallkamp took the witness stand in federal court as the trial in billionaire investor Kirk Kerkorian's lawsuit against DaimlerChrysler resumed after a six-week break.
Kerkorian is suing DaimlerChrysler for more than $1 billion, claiming DaimlerBenz engineered a takeover of Chrysler Corp. in 1998 and then cheated him out of an acquisition fee by claiming it was a merger of equals.
DaimlerChrysler insists the merger was one of equals and that Kerkorian grew disgruntled when his stock price fell.
The trial was put on hold in December after DaimlerChrysler attorneys unexpectedly produced 67 pages of notes and documents from Gary Valade, Chrysler's former chief financial officer.
Judge Joseph Farnan Jr. ordered the resumption of the trial after a special court master attributed the late document production to copying errors and determined that DaimlerChrysler did not act in bad faith.
Letterhead
Among the documents submitted late by DaimlerChrysler was a sheet of Stallkamp's letterhead containing handwritten references, including "sell out for profit," "why didn't we buy," and "senior mgt sold out."
Stallkamp testified Monday that the references, apparently written by Valade, were simply part of a strategic planning session to answer possible concerns from union members, analysts and others.
"They reflect points of view that could be expressed by other people not knowing the intent of the deal," he said under cross-examination by DaimlerChrysler attorney Jonathan Frank.
Valade, who also testified Monday, backed up Stallkamp's description of the notes, saying the phrases did not reflect the thinking of Chrysler executives.
"We always have cynics and we have people who will be critical, and the press will be critical," said Valade, who retired in December. "These were issues that [Stallkamp] saw as public relations issues. ... We have to be prepared to talk to the cynics."
Merger of equals
Stallkamp said repeatedly under questioning by Kerkorian attorney Terry Christensen that the new DaimlerChrysler would reflect a merger of equals, and that former Chrysler and former DaimlerBenz executives would have equal authority.
Stallkamp admitted, however, that the company now bears little resemblance to the intended merger of equals.
"I believe you can characterize this ... as an acquisition, as a financial terminology, but I don't think that was the intent," he testified.
"I believe that the structure we set up in the deal had equal power and authority," Stallkamp said. "How it turned out is a completely different question."