
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, November 7, 1995                   TAG: 9511070068
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: 
DATELINE: DETROIT                                LENGTH: Short

IACOCCA SUES CHRYSLER OVER CASH-OPTION DENIAL

Former Chrysler Corp. Chairman Lee Iacocca sued the company Monday, claiming it unlawfully prevented him from cashing in millions of dollars in stock options he earned at the automaker.

``I deeply regret being forced to sue a company that I helped build and love very much,'' Iacocca said in a news release announcing the lawsuit.

Chrysler's board in July denied a request from Iacocca to exercise options to buy 112,500 Chrysler shares. The company said he had violated stock plan rules that forbid him from working for anyone without Chrysler's permission and from doing anything that hurts the company.

That action came after Iacocca joined billionaire investor Kirk Kerkorian in an abortive $23 billion attempt to take over Chrysler, then went to work as a $500,000-a-year consultant to Kerkorian's Tracinda Corp.

Chrysler officials had not seen the lawsuit Monday, but spokesman Steven J. Harris said it was not unexpected.

Iacocca retired as Chrysler chairman at the end of 1992. He had led the automaker since 1978.

- Associated Press

by CNB