Entries tagged "Ashland"
When Mars signed a deal to buy Wrigley, it reserved the right to skip out. That has since become the industry standard.
Most noteworthy in the $68B deal may be the size of the reverse termination fee: $4.5B.
As the deal pool shrinks, deals are getting done. While spreads are narrowing, opportunity still abounds.
How option theory can illuminate the strange case of private equity walkaway fees.
Sellers may value reverse breakup fees as conditional put options for buyers, but how?
Despite LBO blowups, strategic sellers seem unconcerned by breakup fees in merger pacts. One big reason: a scarcity of bidders.
