Juergen Schrempp denies that Daimler took over Chrysler

Juergen Schrempp was speaking in a US court against a civil suit alleging that the marriage of the two companies was actually a takeover by Daimler.

The court case has been brought by billionaire investor Kirk Kerkorian who says that Chrysler shareholders were wrongly denied giant takeover premiums.

Mr Schrempp insisted that the 1998 deal was "a merger of equals".

No 'secret plan'

The company's chairman added: "I never had a secret plan.

"What we defined in the business combination agreement as a merger of equals was precisely that."

Mr Kerkorian, whose investment group Tracinda was Chrysler's largest shareholder at the time of the merger, is seeking $2bn (�1.15bn) in compensation.

He argues that the former Daimler-Benz falsely described the deal as a takeover to avoid having to pay a higher price to Chrysler shareholders.

'Division'

Mr Schrempp's defence is not helped by an interview he gave to the Financial Times back in October 2000, in which it is alleged he suggested that he saw Chrysler forming a "division" of the new company.

Robert Eaton, who was co-chairman of Chrysler at the time of the merger, said to the court last week that he would have halted the discussions had Schrempp used similar language at the time.

Daimler Chrysler's lawyers have said Mr Schrempp's words were taken out of context or misunderstood.