Merger Negotiations Can Stay Private — Usually

Law360, New York (March 15, 2011, 1:31 PM EDT) -- Federal court rulings have affirmed the permissibility of the common practice among U.S. public companies to generally not disclose ongoing merger negotiations. Of particular note, the December 2009 decision of the U.S. District Court for the Northern District of Illinois in Levie v. Sears Roebuck and Co. and the April 2010 decision of the U.S. Court of Appeals for the Second Circuit in Thesling and Johnson v. Bioenvision Inc.

Each confirmed the widely followed principle that, notwithstanding the existence of active merger negotiations, public disclosure is...
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