Ordinary Course Of Business After An Extraordinary Event

Law360, New York (November 25, 2014, 10:49 AM EST) -- In a typical public company merger agreement, the target is required to continue to operate in the "ordinary course of business" prior to closing. This covenant provides protection for the buyer who is obligated to complete the acquisition subject only to the fulfillment of limited closing conditions, including, typically, the nonoccurrence of a "material adverse effect," and wants some certainty as to what it will be acquiring come the closing....

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