Breakup Fees — Picking Your Number

Law360, New York (September 13, 2012, 1:35 PM EDT) -- During the course of negotiations of every public company deal, inevitably the conversation will turn to the amount of the breakup fee payable by a target company to a buyer if the deal is terminated under certain circumstances. Because U.S. corporate law generally requires a target company to retain the ability to consider post-signing superior proposals, a breakup fee is an important element of the suite of deal protection devices (including "no-shop" restrictions, matching rights, etc.) that an initial buyer implements to seek to protect its position as the favored suitor....

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