CHRYSLER SHAREHOLDERS APPROVE DAIMLER DEAL.

Byline: Associated Press 

Chrysler Corp. shareholders Friday strongly endorsed formation of a new international automaker by merging with Daimler-Benz AG of Germany.

Following their lead, Daimler-Benz shareholders, casting votes shortly before a midnight deadline in Stuttgart, Germany, overwhelmingly approved the combination.

Chrysler Chairman Robert J. Eaton told the 150 shareholders gathered at a special meeting that the new DaimlerChrysler AG ``stands a very good chance of becoming the No. 1 transportation company in the world.''

Preliminary results showed 97.5 percent of the voted Chrysler shares were cast in favor of the deal and 2.5 percent were against - a margin of approval that exceeded even Eaton's optimistic expectations.

Daimler shareholders held a daylong debate, which focused mainly on the issue of executive pay. Preliminary results showed 99.89 percent of the voted Daimler shares were cast in favor of the deal.

The deal was initially worth $38 billion when it was announced in May but has slipped to $31 billion as Daimler stock has fallen.

The gathering in the Hotel du Pont's ornate ballroom lasted just over two hours as dozens of shareholders questioned Eaton about the merger. Most of them opposed the deal, in contrast to the lopsided vote.