The Reappearance Of Ticking Fees In Delayed Closings
August 2, 2013, 3:47 PM EDT
Law360, New York (August 2, 2013, 3:47 PM EDT) -- “Without interest." These words are de rigueur in merger agreements with respect to the amount of merger consideration payable at the closing of the merger. This fixed purchase price concept is almost always the case without regard to the actual or anticipated length of delay between signing and closing the transaction.
Nevertheless, two recent transactions, Thermo Fisher’s acquisition of Life Technologies, announced on April 15, 2013, and Service Corporation International’s acquisition of Stewart Enterprises, announced on May 28, 2012, have included so-called ticking fees, which would...