Entries tagged "MAC clause"
Case law involving material adverse change shows that once Ken Lewis agreed to buy Merrill Lynch, the odds of breaking the deal were slim no matter what the attorneys told regulators.
When Mitsubishi UFJ Financial Group Inc. agreed to invest $9 billion in Morgan Stanley, it was viewed as a capital infusion in exchange for a 21% stake in the U.S. bank. In the two weeks since, Morgan's stock has cratered, and based on Thursday's close of $12.45 a share, Mitsubishi UFJ's investment would buy 65% of the bank. Now, with shares hovering in the $8 range in Friday trading, it looks like $9 billion would buy Morgan Stanley outright (the last time the firm was worth $9 billion was in 1997 before it merged with Dean Witter). So what...
