Merger Deadline Alert Not Rent-A-Center's Job, Chancery Told

Law360, Wilmington (February 12, 2019, 11:10 PM EST) -- Rent-a-Center’s top officer testified in Chancery Court Tuesday that his company had no duty to notify merger partner Vintage Capital Management it was about to miss a $1.4 billion December deal extension deadline, allegedly triggering Rent-A-Center’s right to terminate a tie-up it no longer wanted.

Rent-A-Center CEO Mitchell Fadel said during the second day of a two-day Chancery Court trial that the company’s board privately agreed before the Dec. 17 deadline to break off the deal — using a provision in the contract — if Vintage failed to send written notice of an extension.

The missed deadline, Rent-A-Center argued, also triggered...

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