Premerger coordination: the emerging law of gun jumping and information exchange
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| Format: | Book |
|---|---|
| Language: | English |
| Published: |
Chicago, Ill.
ABA
2006
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| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XIX, 369 S. |
| ISBN: | 9781590315255 1590315251 |
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MARC
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| 245 | 1 | 0 | |a Premerger coordination |b the emerging law of gun jumping and information exchange |c William R. Vigdor (ed.) |
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| 650 | 4 | |a Consolidation and merger of corporations |x Law and legislation |z United States | |
| 650 | 4 | |a Antitrust law |z United States | |
| 650 | 4 | |a Consolidation and merger of corporations |x Law and legislation | |
| 650 | 4 | |a Antitrust law | |
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Record in the Search Index
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| adam_text | CONTENTS
Foreword...............................................................................................xv
Preface.................................................................................................xvii
PARTI
Chapter 1
Introduction............................................................................................1
A. Purpose of This Book..................................................................1
B. Scope of This Book.....................................................................6
C. How This Book Is Organized......................................................7
1. Part I of This Book................................................................7
2. Part II of This Book..............................................................9
Chapter 2
Premerger Activity Under the Hart Scott Rodino Act.....................11
A. Introduction...............................................................................11
B. Overview of the HSR Act.........__...........................................11
C. Beneficial Ownership Under the HSR Act................................14
D. Agency Enforcement Under the HSR Act.................................19
1. The Beginning and End of HSR Act Liability....................19
2. Information Exchanges and Transfers................................23
a. The Risks of Exchanging aad Transferring
Information under the HSR Act...................................23
b. Identifying Competitively Sensitive Information.........27
c. Permissible Information Exchanges.............................29
d. Exchanging Information to Plan for Integration..........32
3. Merger Agreement Provisions............................................37
4. Transfers of Operational Control During the
HSR Act Waiting Period.....................................................43
5. Price Fixing, Market Allocation, and Agreements
Not to Compete...................................................................47
6. Coordinated Activity...........................................................49
7. Competitive Effects Are Not Necessary to Find a
Section 7A Violation...............„........................................50
vi Premerger Coordination
Chapter 7
Premerger Coordination Enforcement Outside of the
United States.......................................................................................145
A. Introduction.............................................................................145
B. Summary of Gun Jumping Rules and Enforcement for
Jurisdictions Outside the United States...................................146
1. Argentina..........................................................................147
2. Australia............................................................................147
3. Austria...............................................................................148
4. Belgium.............................................................................148
5. Canada..............................................................................151
6. Czech Republic.................................................................152
7. European Union................................................................153
8. Finland..............................................................................156
9. France...............................................................................157
10. Germany...........................................................................157
11. Greece...............................................................................158
12. Hungary............................................................................162
13. Ireland...............................................................................162
14. Israel.................................................................................163
15. Italy...................................................................................165
16. Japan.................................................................................166
17. Netherlands.......................................................................166
18. New Zealand.....................................................................169
19. Poland...............................................................................170
20. Portugal.............................................................................171
21. Romania............................................................................171
22. Russia................................................................................171
23. Slovak Republic................................................................172
24. South Africa......................................................................173
25. South Korea......................................................................174
26. Spain.................................................................................174
27. Sweden..............................................................................175
28. Switzerland.......................................................................175
29. Taiwan..............................................................................177
30. Thailand............................................................................177
31. Turkey...............................................................................178
32. Ukraine.............................................................................178
33. United Kingdom...............................................................178
Contents vii
PART II
Introduction........................................................................................181
Chapter 8
Overview of Premerger Information Exchange..............................183
8 1. Issue: Why do information exchanges between
competitors raise antitrust risks?.............................................184
8 2. Issue: My firm wants to approach a competitor (or
we have been approached by a competitor) about a
merger, takeover, or some other arrangement. What are
the first steps that the firm should take to prevent
running afoul of the antitrust laws?.........................................186
8 3. Issue: What information is safe to exchange between
competitors when determining whether a transaction
is feasible?...............................................................................187
8 4. Issue: What information raises antitrust concerns if it
is exchanged between competitors?........................................189
8 5. Issue: How can my firm determine whether certain
exchanges of competitively sensitive information are
reasonably related to conducting due diligence?.....................191
8 6. Issue: Before my firm receives due diligence
information about a competitor, what safeguards can it
use to prevent the information from being used
commercially?.........................................................................193
8 7. Issue: What kinds of protections should be put into a
nondisclosure agreement (NDA)?...........................................195
8 8. Issue: What are the benefits of entering into a
nondisclosure agreement (NDA) governing the exchange
of information prior to closing the transaction?......................196
8 9. Issue: How does the complying party reduce its
antitrust liability if the other party breaches its
obligations under a nondisclosure agreement (NDA)?...........197
8 10. Issue: Do antitrust risks associated with sharing
competitively sensitive information with a competitor
depend on who in my firm s organization has access to
the information?......................................................................198
8 11. Issue: My firm has put in place some of the
protections identified in Issues 8 2, 8 6, 8 7, and 8 10.
Are there other concerns of which my firm should be
aware?.....................................................................................201
viii Premerger Coordination
8 12. Issue: My firm has been advised by counsel that the
contemplated transaction with a competitor, no matter
what the structure, would not raise antitrust concerns.
Does that mean there are no limits on my firm s
discussions with a merger partner?.........................................202
8 13. Issue: My firm wants to consider a merger,
acquisition, or a joint venture. How does it assess the
risks associated with an information exchange?.....................204
8 14. Issue: When do Section 1 and Section 5 begin to
apply to the conduct of the merging parties? When do
they cease to apply? Is the answer the same for the HSR
Act?.......................................................................................206
Chapter 9
Exchanging Information While Conducting Due Diligence...........209
9 1. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange current
and historic production levels?................................................210
9 2. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange
nonpublic forward looking production plans?........................213
9 3. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange strategic
plans?.....................................................................................216
9 4. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange
nonpublic cost data?................................................................219
9 5. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange
nonpublic transaction information and pricing data and
policies?..................................................................................221
9 6. Issue: My firm has decided that exchanging
competitively sensitive information with a competitor is
reasonably related to valuing the transaction. Will
delaying the exchange until closer to signing the
Contents ix
transaction and consummation reduce the antitrust risk
of sharing the competitor s sensitive information?.................224
9 7. Issue: My firm has chosen to exchange competitively
sensitive information with a competitor to complete due
diligence and value the transaction. Can the firm
aggregate the information and, if so, how?.............................226
9 8. Issue: My firm has chosen to exchange competitively
sensitive information with a competitor to conduct due
diligence. One of the safeguards my firm is considering
is to collect older information now and obtain current
information later. Would this reduce antitrust risk?................227
9 9. Issue: Can the parties agree to conduct partial due
diligence and set a price adjustment clause in the merger
agreement and then conduct due diligence after
executing the agreement and closing?.....................................228
9 10. Issue: Can the parties cure overly restrictive merger
agreement provisions?.............................................................229
9 11. Issue: Can the parties cure an excessive exchange
of information?........................................................................230
9 12. Issue: What are the penalties if the parties violate the
antitrust laws by exchanging competitively sensitive
information?............................................................................232
Chapter 10
Merger Agreement Provisions...........................................................233
10 1. Issue: Do ordinary course of business provisions in
merger agreements raise antitrust concerns?...........................234
10 2. Issue: If the parties include an ordinary course of
business provision in the merger agreement, can they set
up a mechanism to discuss periodically the interpretation
of ordinary course?..................................................................236
10 3. Issue: If the parties include as. ordinary course of
business provision in a merger agreement, can they add
details that will obviate the need to have ongoing
conversations about the seller s business plans? If so,
what provisions are permissible?............................................237
10 4. Issue: Rather than an outright prohibition, can
competitors that are parties to a merger agreement
require prior approval of transactions outside the
ordinary course of business?...................................................238
x Premerger Coordination
10 5. Issue: Can the parties include a material adverse
change (MAC) clause in a merger agreement?.......................239
10 6. Issue: While negotiating a transaction and during the
waiting period, may parties enter into collaborations,
joint ventures, or buy sell transactions?..................................240
10 7. Issue: In a business where each firm has a small
number of very important contracts, what restrictions
can the buyer place on the seller as to new contracts that
it may sign pending consummation of the merger?.................242
10 8. Issue: If one merging party ordinarily enters into
long term contracts, i.e., contracts that will be in force
for a significant period of time after expiration of the
HSR Act waiting period and closing of the transaction,
may the merger agreement prohibit or require prior
approval before entering into such contracts?.........................243
10 9. Issue: Can the merger agreement restrict the seller s
pricing?...................................................................................246
10 10. Issue: Can the merger agreement restrict to whom
the seller offers a bid, or against whom a party wishes to
compete?..................................................................................248
10 11. Issue: Can the merger agreement prohibit the seller
from making certain capital investments?...............................250
10 12. Issue: Can a transaction agreement impose a cap on
the value of any contract that the parties may execute
prior to closing?.......................................................................251
10 13. Issue: Can a merger agreement require a seller to
continue paying vendors and creditors, maintain
advertising, and retain certain employees?..............................252
10 14. Issue: Can a buyer provide a loan to or acquire a
small financial interest in a seller while the merger
review is pending?...................................................................253
10 15. Issue: Are there special gun jumping considerations
for a transaction whereby one party acquires an interest
in a second party in a nonreportable transaction, but
thereafter agrees to a second reportable transaction with
the same party?........................................................................255
10 16. Issue: Can the merger agreement include an
outsourcing arrangement whereby the buyer operates the
seller s business prior to termination of the HSR Act
waiting period?........................................................................256
Contents xi
Chapter 11
Postexecution and Postwaiting Period Coordination......................257
11 1. Issue: Can my firm conduct transition planning
before the expiration of the HSR Act waiting period and,
if so, how will the agencies evaluate such conduct?...............258
11 2. Issue: The parties have signed a merger agreement
conditioned on the conclusion of additional due
diligence. Is it permissible to exchange competitively
sensitive information between competitors and continue
to conduct due diligence and plan for the merger?..................259
11 3. Issue: Can the buyer require the seller, or otherwise
agree with the seller, to cancel the seller s healthcare or
benefit packages to negotiate a more favorable rate?..............262
11 4. Issue: One party faces negotiations of long term
contracts (e.g., negotiations for long term sales or
long term labor union contracts) that are material to the
value of the company and will be effective after closing.
What involvement may the other party have in such
negotiations?............................................................................263
11 5. Issue: May the acquiring company, during the HSR
Act waiting period, create a new organizational chart
detailing responsibilities for employees from both
organizations after the transaction is consummated?..............265
11 6. Issue: During the HSR Act waiting period, may the
acquiring party have access to the personnel files or
interview employees of the target company?..........................266
11 7. Issue: My firm is having problems retaining certain
employees. It wants to announce who will be offered
positions in the merged entity and who will not. Can the
firm make such an announcement prior to
consummation?.......................................................................268
11 8. Issue: The computer systems of the entity being
acquired do not operate with the acquirer s existing
systems. The firms need to work out a communication
systems protocol to allow the information technology to
work seamlessly after the deal closes. Can the
companies exchange information during the HSR Act
waiting period to make sure that the systems will work
together after consummation?.................................................270
xii Premerger Coordination
11 9. Issue: The seller is losing important customers
during the HSR Act waiting period. Can the buyer s
Chief Executive Officer go to the customers and assure
them that the buyer will honor their existing contracts?.........272
11 10. Issue: Can the buyer, on its own initiative, contact
customers and seek price adjustments to the seller s
current contracts? Instead of meeting with customers,
can the buyer direct the seller to modify its contracts?
Does the answer change if prices decrease as a result of
the price adjustments (to keep customers with the seller
until the merger occurs)? Does it matter if the customer
approaches the buyer to initiate a price adjustment?...............274
11 11. Issue: The sales contract between the seller and
customer contains a provision allowing the customer to
terminate the contract upon a change of control of the
seller. If the customer contacts the buyer of the
to be acquired business during the HSR Act waiting
period stating that it will exercise its option to terminate
unless the buyer agrees to a discounted price effective
after the merger is consummated, can the buyer negotiate
during the HSR Act waiting period a merger contingent
price adjustment with the seller s customer?...........................275
11 12. Issue: One of the seller s customers has a contract
that is about to expire and wishes to negotiate continuing
the contract with both the buyer and seller. Can the
buyer, either jointly with the seller or as a replacement
for the seller, negotiate the terms of the contract for
actions to be performed after the transaction is closed?..........276
11 13. Issue: Can the buyer and seller jointly determine and
announce prices of the merged firm?......................................278
11 14. Issue: Can the transacting firms hold themselves out
to the public as having been merged prior to
consummation?........................................................................280
11 15. Issue: The parties have developed plans for the
merged entity and wish to announce publicly these
plans. What risks are associated with such
announcements?......................................................................281
11 16. Issue: May the parties jointly promote the merger to
shareholders, the investment community and customers?......282
11 17. Issue: The firms are going to merge anyway. Can
they jointly market the products of the firms?.........................283
Contents xiii
11 18. Issue: Can the parties jointly determine their
advertising during the HSR Act waiting period?....................284
11 19. Issue: A and B have executed a merger agreement.
Prior to executing the merger agreement B had a
long term exclusive contract with C to obtain supplies. B
wishes to terminate its contract with C and use A, the
other merging party, to obtain supplies during the HSR
Act waiting period and thereafter. What are the risks?...........285
11 20. Issue: Can the buyer and seller enter into a joint
purchasing agreement prior to the expiration of the HSR
Act waiting period?.................................................................286
11 21. Issue: To what extent can the buyer and seller
negotiate supply contracts that take effect after closing?........287
11 22. Issue: The acquired firm was in the process of
building a new plant that the firm would need if the
transaction did not close, but if the merger closes the
seller will not need the plant; what type of coordination
is permissible?.........................................................................288
11 23. Issue: Do the antitrust laws apply to potential
gun jumping activity after the HSR Act waiting period
has expired or the agencies have granted early
termination of the waiting period?..........................................289
11 24. Issue: Can the seller allow the buyer to take over the
seller s customer contracting process after early
termination of the HSR Act waiting period or after the
HSR Act waiting period has expired, but before closing?......290
11 25. Issue: Will the agencies ever challenge gun jumping
after consummation of the merger?.........................................292
Appendix 1
United States v. Atlantic Richfield Company (ARCO I)
Complaint............................................................................................293
Appendix 2
United States v. Atlantic Richfield Company (ARCO II)
Complaint............................................................................................299
Appendix 3
United States v. Titan Wheel International, Inc.
Complaint............................................................................................307
xiv Premerger Coordination
Appendix 4
Presentation to the ABA Business Law Section
San Francisco, August 2003...............................................................313
Table of Cited Materials....................................................................317
Index....................................................................................................337
|
| adam_txt |
CONTENTS
Foreword.xv
Preface.xvii
PARTI
Chapter 1
Introduction.1
A. Purpose of This Book.1
B. Scope of This Book.6
C. How This Book Is Organized.7
1. Part I of This Book.7
2. Part II of This Book.9
Chapter 2
Premerger Activity Under the Hart Scott Rodino Act.11
A. Introduction.11
B. Overview of the HSR Act._.11
C. Beneficial Ownership Under the HSR Act.14
D. Agency Enforcement Under the HSR Act.19
1. The Beginning and End of HSR Act Liability.19
2. Information Exchanges and Transfers.23
a. The Risks of Exchanging aad Transferring
Information under the HSR Act.23
b. Identifying Competitively Sensitive Information.27
c. Permissible Information Exchanges.29
d. Exchanging Information to Plan for Integration.32
3. Merger Agreement Provisions.37
4. Transfers of Operational Control During the
HSR Act Waiting Period.43
5. Price Fixing, Market Allocation, and Agreements
Not to Compete.47
6. Coordinated Activity.49
7. Competitive Effects Are Not Necessary to Find a
Section 7A Violation.„.50
vi Premerger Coordination
Chapter 7
Premerger Coordination Enforcement Outside of the
United States.145
A. Introduction.145
B. Summary of Gun Jumping Rules and Enforcement for
Jurisdictions Outside the United States.146
1. Argentina.147
2. Australia.147
3. Austria.148
4. Belgium.148
5. Canada.151
6. Czech Republic.152
7. European Union.153
8. Finland.156
9. France.157
10. Germany.157
11. Greece.158
12. Hungary.162
13. Ireland.162
14. Israel.163
15. Italy.165
16. Japan.166
17. Netherlands.166
18. New Zealand.169
19. Poland.170
20. Portugal.171
21. Romania.171
22. Russia.171
23. Slovak Republic.172
24. South Africa.173
25. South Korea.174
26. Spain.174
27. Sweden.175
28. Switzerland.175
29. Taiwan.177
30. Thailand.177
31. Turkey.178
32. Ukraine.178
33. United Kingdom.178
Contents vii
PART II
Introduction.181
Chapter 8
Overview of Premerger Information Exchange.183
8 1. Issue: Why do information exchanges between
competitors raise antitrust risks?.184
8 2. Issue: My firm wants to approach a competitor (or
we have been approached by a competitor) about a
merger, takeover, or some other arrangement. What are
the first steps that the firm should take to prevent
running afoul of the antitrust laws?.186
8 3. Issue: What information is safe to exchange between
competitors when determining whether a transaction
is feasible?.187
8 4. Issue: What information raises antitrust concerns if it
is exchanged between competitors?.189
8 5. Issue: How can my firm determine whether certain
exchanges of competitively sensitive information are
reasonably related to conducting due diligence?.191
8 6. Issue: Before my firm receives due diligence
information about a competitor, what safeguards can it
use to prevent the information from being used
commercially?.193
8 7. Issue: What kinds of protections should be put into a
nondisclosure agreement (NDA)?.195
8 8. Issue: What are the benefits of entering into a
nondisclosure agreement (NDA) governing the exchange
of information prior to closing the transaction?.196
8 9. Issue: How does the complying party reduce its
antitrust liability if the other party breaches its
obligations under a nondisclosure agreement (NDA)?.197
8 10. Issue: Do antitrust risks associated with sharing
competitively sensitive information with a competitor
depend on who in my firm's organization has access to
the information?.198
8 11. Issue: My firm has put in place some of the
protections identified in Issues 8 2, 8 6, 8 7, and 8 10.
Are there other concerns of which my firm should be
aware?.201
viii Premerger Coordination
8 12. Issue: My firm has been advised by counsel that the
contemplated transaction with a competitor, no matter
what the structure, would not raise antitrust concerns.
Does that mean there are no limits on my firm's
discussions with a merger partner?.202
8 13. Issue: My firm wants to consider a merger,
acquisition, or a joint venture. How does it assess the
risks associated with an information exchange?.204
8 14. Issue: When do Section 1 and Section 5 begin to
apply to the conduct of the merging parties? When do
they cease to apply? Is the answer the same for the HSR
Act?.206
Chapter 9
Exchanging Information While Conducting Due Diligence.209
9 1. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange current
and historic production levels?.210
9 2. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange
nonpublic forward looking production plans?.213
9 3. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange strategic
plans?.216
9 4. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange
nonpublic cost data?.219
9 5. Issue: My firm has decided that a transaction with a
competitor is feasible and wants to move forward with
detailed due diligence. Can the firms exchange
nonpublic transaction information and pricing data and
policies?.221
9 6. Issue: My firm has decided that exchanging
competitively sensitive information with a competitor is
reasonably related to valuing the transaction. Will
delaying the exchange until closer to signing the
Contents ix
transaction and consummation reduce the antitrust risk
of sharing the competitor's sensitive information?.224
9 7. Issue: My firm has chosen to exchange competitively
sensitive information with a competitor to complete due
diligence and value the transaction. Can the firm
aggregate the information and, if so, how?.226
9 8. Issue: My firm has chosen to exchange competitively
sensitive information with a competitor to conduct due
diligence. One of the safeguards my firm is considering
is to collect older information now and obtain current
information later. Would this reduce antitrust risk?.227
9 9. Issue: Can the parties agree to conduct partial due
diligence and set a price adjustment clause in the merger
agreement and then conduct due diligence after
executing the agreement and closing?.228
9 10. Issue: Can the parties cure overly restrictive merger
agreement provisions?.229
9 11. Issue: Can the parties cure an "excessive" exchange
of information?.230
9 12. Issue: What are the penalties if the parties violate the
antitrust laws by exchanging competitively sensitive
information?.232
Chapter 10
Merger Agreement Provisions.233
10 1. Issue: Do ordinary course of business provisions in
merger agreements raise antitrust concerns?.234
10 2. Issue: If the parties include an ordinary course of
business provision in the merger agreement, can they set
up a mechanism to discuss periodically the interpretation
of ordinary course?.236
10 3. Issue: If the parties include as. ordinary course of
business provision in a merger agreement, can they add
details that will obviate the need to have ongoing
conversations about the seller's business plans? If so,
what provisions are permissible?.237
10 4. Issue: Rather than an outright prohibition, can
competitors that are parties to a merger agreement
require prior approval of transactions outside the
ordinary course of business?.238
x Premerger Coordination
10 5. Issue: Can the parties include a material adverse
change (MAC) clause in a merger agreement?.239
10 6. Issue: While negotiating a transaction and during the
waiting period, may parties enter into collaborations,
joint ventures, or buy sell transactions?.240
10 7. Issue: In a business where each firm has a small
number of very important contracts, what restrictions
can the buyer place on the seller as to new contracts that
it may sign pending consummation of the merger?.242
10 8. Issue: If one merging party ordinarily enters into
long term contracts, i.e., contracts that will be in force
for a significant period of time after expiration of the
HSR Act waiting period and closing of the transaction,
may the merger agreement prohibit or require prior
approval before entering into such contracts?.243
10 9. Issue: Can the merger agreement restrict the seller's
pricing?.246
10 10. Issue: Can the merger agreement restrict to whom
the seller offers a bid, or against whom a party wishes to
compete?.248
10 11. Issue: Can the merger agreement prohibit the seller
from making certain capital investments?.250
10 12. Issue: Can a transaction agreement impose a cap on
the value of any contract that the parties may execute
prior to closing?.251
10 13. Issue: Can a merger agreement require a seller to
continue paying vendors and creditors, maintain
advertising, and retain certain employees?.252
10 14. Issue: Can a buyer provide a loan to or acquire a
small financial interest in a seller while the merger
review is pending?.253
10 15. Issue: Are there special gun jumping considerations
for a transaction whereby one party acquires an interest
in a second party in a nonreportable transaction, but
thereafter agrees to a second reportable transaction with
the same party?.255
10 16. Issue: Can the merger agreement include an
outsourcing arrangement whereby the buyer operates the
seller's business prior to termination of the HSR Act
waiting period?.256
Contents xi
Chapter 11
Postexecution and Postwaiting Period Coordination.257
11 1. Issue: Can my firm conduct transition planning
before the expiration of the HSR Act waiting period and,
if so, how will the agencies evaluate such conduct?.258
11 2. Issue: The parties have signed a merger agreement
conditioned on the conclusion of additional due
diligence. Is it permissible to exchange competitively
sensitive information between competitors and continue
to conduct due diligence and plan for the merger?.259
11 3. Issue: Can the buyer require the seller, or otherwise
agree with the seller, to cancel the seller's healthcare or
benefit packages to negotiate a more favorable rate?.262
11 4. Issue: One party faces negotiations of long term
contracts (e.g., negotiations for long term sales or
long term labor union contracts) that are material to the
value of the company and will be effective after closing.
What involvement may the other party have in such
negotiations?.263
11 5. Issue: May the acquiring company, during the HSR
Act waiting period, create a new organizational chart
detailing responsibilities for employees from both
organizations after the transaction is consummated?.265
11 6. Issue: During the HSR Act waiting period, may the
acquiring party have access to the personnel files or
interview employees of the target company?.266
11 7. Issue: My firm is having problems retaining certain
employees. It wants to announce who will be offered
positions in the merged entity and who will not. Can the
firm make such an announcement prior to
consummation?.268
11 8. Issue: The computer systems of the entity being
acquired do not operate with the acquirer's existing
systems. The firms need to work out a communication
systems protocol to allow the information technology to
work seamlessly after the deal closes. Can the
companies exchange information during the HSR Act
waiting period to make sure that the systems will work
together after consummation?.270
xii Premerger Coordination
11 9. Issue: The seller is losing important customers
during the HSR Act waiting period. Can the buyer's
Chief Executive Officer go to the customers and assure
them that the buyer will honor their existing contracts?.272
11 10. Issue: Can the buyer, on its own initiative, contact
customers and seek price adjustments to the seller's
current contracts? Instead of meeting with customers,
can the buyer direct the seller to modify its contracts?
Does the answer change if prices decrease as a result of
the price adjustments (to keep customers with the seller
until the merger occurs)? Does it matter if the customer
approaches the buyer to initiate a price adjustment?.274
11 11. Issue: The sales contract between the seller and
customer contains a provision allowing the customer to
terminate the contract upon a change of control of the
seller. If the customer contacts the buyer of the
to be acquired business during the HSR Act waiting
period stating that it will exercise its option to terminate
unless the buyer agrees to a discounted price effective
after the merger is consummated, can the buyer negotiate
during the HSR Act waiting period a merger contingent
price adjustment with the seller's customer?.275
11 12. Issue: One of the seller's customers has a contract
that is about to expire and wishes to negotiate continuing
the contract with both the buyer and seller. Can the
buyer, either jointly with the seller or as a replacement
for the seller, negotiate the terms of the contract for
actions to be performed after the transaction is closed?.276
11 13. Issue: Can the buyer and seller jointly determine and
announce prices of the merged firm?.278
11 14. Issue: Can the transacting firms hold themselves out
to the public as having been merged prior to
consummation?.280
11 15. Issue: The parties have developed plans for the
merged entity and wish to announce publicly these
plans. What risks are associated with such
announcements?.281
11 16. Issue: May the parties jointly promote the merger to
shareholders, the investment community and customers?.282
11 17. Issue: The firms are going to merge anyway. Can
they jointly market the products of the firms?.283
Contents xiii
11 18. Issue: Can the parties jointly determine their
advertising during the HSR Act waiting period?.284
11 19. Issue: A and B have executed a merger agreement.
Prior to executing the merger agreement B had a
long term exclusive contract with C to obtain supplies. B
wishes to terminate its contract with C and use A, the
other merging party, to obtain supplies during the HSR
Act waiting period and thereafter. What are the risks?.285
11 20. Issue: Can the buyer and seller enter into a joint
purchasing agreement prior to the expiration of the HSR
Act waiting period?.286
11 21. Issue: To what extent can the buyer and seller
negotiate supply contracts that take effect after closing?.287
11 22. Issue: The acquired firm was in the process of
building a new plant that the firm would need if the
transaction did not close, but if the merger closes the
seller will not need the plant; what type of coordination
is permissible?.288
11 23. Issue: Do the antitrust laws apply to potential
gun jumping activity after the HSR Act waiting period
has expired or the agencies have granted early
termination of the waiting period?.289
11 24. Issue: Can the seller allow the buyer to take over the
seller's customer contracting process after early
termination of the HSR Act waiting period or after the
HSR Act waiting period has expired, but before closing?.290
11 25. Issue: Will the agencies ever challenge gun jumping
after consummation of the merger?.292
Appendix 1
United States v. Atlantic Richfield Company (ARCO I)
Complaint.293
Appendix 2
United States v. Atlantic Richfield Company (ARCO II)
Complaint.299
Appendix 3
United States v. Titan Wheel International, Inc.
Complaint.307
xiv Premerger Coordination
Appendix 4
Presentation to the ABA Business Law Section
San Francisco, August 2003.313
Table of Cited Materials.317
Index.337 |
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| spelling | Premerger coordination the emerging law of gun jumping and information exchange William R. Vigdor (ed.) Chicago, Ill. ABA 2006 XIX, 369 S. txt rdacontent n rdamedia nc rdacarrier Recht Consolidation and merger of corporations Law and legislation United States Antitrust law United States Consolidation and merger of corporations Law and legislation Antitrust law USA Vigdor, William R. Sonstige oth HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014932827&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Premerger coordination the emerging law of gun jumping and information exchange Recht Consolidation and merger of corporations Law and legislation United States Antitrust law United States Consolidation and merger of corporations Law and legislation Antitrust law |
| title | Premerger coordination the emerging law of gun jumping and information exchange |
| title_auth | Premerger coordination the emerging law of gun jumping and information exchange |
| title_exact_search | Premerger coordination the emerging law of gun jumping and information exchange |
| title_exact_search_txtP | Premerger coordination the emerging law of gun jumping and information exchange |
| title_full | Premerger coordination the emerging law of gun jumping and information exchange William R. Vigdor (ed.) |
| title_fullStr | Premerger coordination the emerging law of gun jumping and information exchange William R. Vigdor (ed.) |
| title_full_unstemmed | Premerger coordination the emerging law of gun jumping and information exchange William R. Vigdor (ed.) |
| title_short | Premerger coordination |
| title_sort | premerger coordination the emerging law of gun jumping and information exchange |
| title_sub | the emerging law of gun jumping and information exchange |
| topic | Recht Consolidation and merger of corporations Law and legislation United States Antitrust law United States Consolidation and merger of corporations Law and legislation Antitrust law |
| topic_facet | Recht Consolidation and merger of corporations Law and legislation United States Antitrust law United States Consolidation and merger of corporations Law and legislation Antitrust law USA |
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