Breaking Up is Hard to Do? An Analysis of Termination Fee Provisions and Merger Outcomes

Holdups, Renegotiation, and Termination Fees in Stock Mergers

We examine contract forms used in stock mergers from the announcement of initial definitive agreement to the final completion or termination of the deal, as well as the renegotiation process in between. Within the incomplete contract framework, we first build a model that allows for renegotiation of the initial contract following the arrival of new information. We demonstrate that the signing o...

Two Wrongs Do Not Make a Right: Flaws in Alternatives to Fee-for-Service Payment Plans Do Not Mean Fee-for-Service Is a Good Solution to Rising Prices; Comment on “Fee-for-Service Payment - An Evil Practice That Must Be Stamped Out?”

Professor Naoki Ikegami’s “Fee-for-service payment – an evil practice that must be stamped out” summarizes many of the failings of alternatives to fee-for-service (FFS) payment systems. His article also offers several suggestions for improving FFS systems. However, even powerful arguments against many of the alternatives to FFS, does not make a convincing argument for FFS systems. In addition, ...

Termination fees in mergers and acquisitions

The paper examines the motivation for termination fee use by proving evidence on the effects of including a target termination fee in a merger contract. I test the implications of the hypothesis that termination fees are used by self-interested target managers to deter competing bids and protect “sweetheart” deals with white knight bidders, presumably resulting in lower premiums for target shar...

Anticompetitive Impact of Star Pagination License Fee Provisions Creates Temporary Delay for Thomson-West Merger

Cross Border Mergers and Acquisitions by Indian firms-An Analysis of Pre and Post Merger performance

The corporate sector all over the world is restructuring its operations through different types  of  consolidation  strategies  like  mergers  and  acquisitions  in  order  to  face challenges  posed  by  the  new  pattern  of  globalization,  which  has  led  to  the  greater integration of national and international markets.. The intensity of cross-border operations recorded an unprecedented ...